Why NYSE:SQM qualifies as a good dividend investing stock.

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) has caught the attention of dividend investors as a stock worth considering. NYSE:SQM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Exploring NYSE:SQM's Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:SQM has been assigned a 7 for dividend:

• SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
• SQM's Dividend Yield is rather good when compared to the industry average which is at 2.45. SQM pays more dividend than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, SQM pays a better dividend.
• The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
• SQM has been paying a dividend for at least 10 years, so it has a reliable track record.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SQM has received a 8 out of 10:

• An Altman-Z score of 4.99 indicates that SQM is not in any danger for bankruptcy at the moment.
• SQM has a better Altman-Z score (4.99) than 82.56% of its industry peers.
• The Debt to FCF ratio of SQM is 2.06, which is a good value as it means it would take SQM, 2.06 years of fcf income to pay off all of its debts.
• SQM has a Debt to FCF ratio of 2.06. This is amongst the best in the industry. SQM outperforms 88.37% of its industry peers.
• SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for SQM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• SQM has a Current Ratio of 2.48. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.48, SQM is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.81, SQM is in the better half of the industry, outperforming 63.95% of the companies in the same industry.

What does the Profitability looks like for NYSE:SQM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SQM, the assigned 10 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 34.56%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Return On Equity of SQM (71.10%) is better than 100.00% of its industry peers.
• SQM's Return On Invested Capital of 46.56% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 11.41%.
• The last Return On Invested Capital (46.56%) for SQM is above the 3 year average (22.85%), which is a sign of increasing profitability.
• The Profit Margin of SQM (35.24%) is better than 98.84% of its industry peers.
• In the last couple of years the Profit Margin of SQM has grown nicely.
• The Operating Margin of SQM (49.99%) is better than 100.00% of its industry peers.
• SQM's Operating Margin has improved in the last couple of years.
• SQM has a Gross Margin of 51.46%. This is amongst the best in the industry. SQM outperforms 98.84% of its industry peers.
• In the last couple of years the Gross Margin of SQM has grown nicely.

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Check the latest full fundamental report of SQM for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.