Is NASDAQ:AVT suited for dividend investing?

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

How do we evaluate the Dividend for NASDAQ:AVT?

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:AVT scores a 8 out of 10:

• AVT's Dividend Yield is rather good when compared to the industry average which is at 2.01. AVT pays more dividend than 96.03% of the companies in the same industry.
• The dividend of AVT is nicely growing with an annual growth rate of 9.30%!
• AVT has paid a dividend for at least 10 years, which is a reliable track record.
• AVT has not decreased their dividend for at least 10 years, which is a reliable track record.
• 22.45% of the earnings are spent on dividend by AVT. This is a low number and sustainable payout ratio.
• AVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NASDAQ:AVT

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:AVT, the assigned 5 reflects its health status:

• AVT has an Altman-Z score of 3.55. This indicates that AVT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.55, AVT is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
• A Debt/Equity ratio of 0.49 indicates that AVT is not too dependend on debt financing.
• A Current Ratio of 2.32 indicates that AVT has no problem at all paying its short term obligations.

Understanding NASDAQ:AVT's Profitability

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:

• AVT has a Return On Assets of 4.08%. This is in the better half of the industry: AVT outperforms 67.46% of its industry peers.
• With a decent Return On Equity value of 10.13%, AVT is doing good in the industry, outperforming 74.60% of the companies in the same industry.
• AVT has a better Return On Invested Capital (9.11%) than 79.37% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for AVT is above the industry average of 8.95%.
• In the last couple of years the Profit Margin of AVT has grown nicely.
• AVT's Operating Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of AVT

Disclaimer

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.