Balancing Dividends and Fundamentals: The Case of NASDAQ:AVT.

AVNET INC (NASDAQ:AVT) has caught the attention of dividend investors as a stock worth considering. NASDAQ:AVT excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

How We Gauge Dividend for NASDAQ:AVT

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:AVT has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 1.75, AVT pays a better dividend. On top of this AVT pays more dividend than 96.83% of the companies listed in the same industry.
• The dividend of AVT is nicely growing with an annual growth rate of 8.88%!
• AVT has been paying a dividend for at least 10 years, so it has a reliable track record.
• AVT has not decreased their dividend for at least 10 years, which is a reliable track record.
• 19.37% of the earnings are spent on dividend by AVT. This is a low number and sustainable payout ratio.

Deciphering NASDAQ:AVT's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:AVT has earned a 5 out of 10:

• AVT has an Altman-Z score of 3.66. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
• AVT has a Altman-Z score of 3.66. This is in the better half of the industry: AVT outperforms 65.87% of its industry peers.
• A Debt/Equity ratio of 0.48 indicates that AVT is not too dependend on debt financing.
• A Current Ratio of 2.33 indicates that AVT has no problem at all paying its short term obligations.

A Closer Look at Profitability for NASDAQ:AVT

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:AVT has achieved a 5:

• AVT's Return On Assets of 4.64% is fine compared to the rest of the industry. AVT outperforms 69.84% of its industry peers.
• Looking at the Return On Equity, with a value of 11.45%, AVT is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
• With a decent Return On Invested Capital value of 10.48%, AVT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
• The 3 year average ROIC (9.91%) for AVT is below the current ROIC(10.48%), indicating increased profibility in the last year.
• AVT's Operating Margin has improved in the last couple of years.

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

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.