Analyzing NASDAQ:AVT's Dividend Potential.

AVNET INC (NASDAQ:AVT) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:AVT scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend Metrics for NASDAQ:AVT

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:AVT was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 1.65, AVT pays a better dividend. On top of this AVT pays more dividend than 96.80% 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 paid a dividend for at least 10 years, which is a reliable track record.
• AVT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• AVT pays out 19.37% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: NASDAQ:AVT

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 3.68. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
• AVT has a Altman-Z score of 3.68. This is in the better half of the industry: AVT outperforms 62.40% of its industry peers.
• AVT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
• AVT has a Current Ratio of 2.33. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for NASDAQ:AVT?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AVT, the assigned 5 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 4.64%, AVT is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
• The Return On Equity of AVT (11.45%) is better than 79.20% of its industry peers.
• AVT's Return On Invested Capital of 10.48% is fine compared to the rest of the industry. AVT outperforms 78.40% of its industry peers.
• The last Return On Invested Capital (10.48%) for AVT is above the 3 year average (9.91%), which is a sign of increasing profitability.
• AVT's Operating Margin has improved in the last couple of years.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.