Why AMPHENOL CORP-CL A (NYSE:APH) is a Top Pick for Dividend Investors.

AMPHENOL CORP-CL A (NYSE:APH) has caught the attention of dividend investors as a stock worth considering. NYSE:APH excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Evaluating Dividend: NYSE:APH

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:APH has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.98, APH pays a better dividend. On top of this APH pays more dividend than 87.50% of the companies listed in the same industry.
• APH has been paying a dividend for at least 10 years, so it has a reliable track record.
• APH has not decreased their dividend for at least 10 years, which is a reliable track record.
• APH pays out 24.55% of its income as dividend. This is a sustainable payout ratio.
• The dividend of APH is growing, but earnings are growing more, so the dividend growth is sustainable.

How do we evaluate the Health for NYSE:APH?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:APH, the assigned 5 for health provides valuable insights:

• APH has an Altman-Z score of 5.95. This indicates that APH is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.95, APH belongs to the best of the industry, outperforming 80.83% of the companies in the same industry.
• The Debt to FCF ratio of APH is 3.20, which is a good value as it means it would take APH, 3.20 years of fcf income to pay off all of its debts.
• APH has a Debt to FCF ratio of 3.20. This is in the better half of the industry: APH outperforms 62.50% of its industry peers.
• APH has a Current Ratio of 2.37. This indicates that APH is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NYSE:APH

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:APH has earned a 8 out of 10:

• With an excellent Return On Assets value of 11.31%, APH belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
• The Return On Equity of APH (24.76%) is better than 93.33% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 15.17%, APH belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
• APH had an Average Return On Invested Capital over the past 3 years of 15.75%. This is significantly above the industry average of 8.76%.
• Looking at the Profit Margin, with a value of 15.92%, APH belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
• In the last couple of years the Profit Margin of APH has grown nicely.
• The Operating Margin of APH (21.57%) is better than 99.17% of its industry peers.
• In the last couple of years the Operating Margin of APH has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

This article should in no way be interpreted as advice. 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.