Is NASDAQ:NXST suited for dividend investing?

Our stock screener has spotted NEXSTAR MEDIA GROUP INC (NASDAQ:NXST) as a good dividend stock with solid fundamentals. NASDAQ:NXST shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Understanding NASDAQ:NXST's Dividend Score

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:NXST has been awarded a 8 for its dividend quality:

• With a Yearly Dividend Yield of 4.04%, NXST is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 4.80, NXST pays a better dividend. On top of this NXST pays more dividend than 88.66% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.76, NXST pays a bit more dividend than the S&P500 average.
• On average, the dividend of NXST grows each year by 20.35%, which is quite nice.
• NXST has paid a dividend for at least 10 years, which is a reliable track record.
• NXST has not decreased their dividend for at least 10 years, which is a reliable track record.
• NXST pays out 23.86% of its income as dividend. This is a sustainable payout ratio.

Understanding NASDAQ:NXST's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NXST, the assigned 5 reflects its health status:

• Looking at the Altman-Z score, with a value of 1.46, NXST is in the better half of the industry, outperforming 61.86% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 6.26, NXST is doing good in the industry, outperforming 69.07% of the companies in the same industry.
• NXST has a Current ratio of 1.88. This is in the better half of the industry: NXST outperforms 61.86% of its industry peers.
• Looking at the Quick ratio, with a value of 1.88, NXST is in the better half of the industry, outperforming 63.92% of the companies in the same industry.

What does the Profitability looks like for NASDAQ:NXST

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NXST has achieved a 8:

• Looking at the Return On Assets, with a value of 5.68%, NXST belongs to the top of the industry, outperforming 88.66% of the companies in the same industry.
• The Return On Equity of NXST (27.49%) is better than 91.75% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 7.79%, NXST belongs to the top of the industry, outperforming 80.41% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for NXST is above the industry average of 6.17%.
• The Profit Margin of NXST (13.31%) is better than 81.44% of its industry peers.
• NXST has a better Operating Margin (22.18%) than 89.69% of its industry peers.
• NXST's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 60.78%, NXST is in the better half of the industry, outperforming 71.13% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of NXST contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.