Is AVNET INC (NASDAQ:AVT) a Good Fit for Dividend Investing?

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.

Understanding NASDAQ:AVT's Dividend

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 7 out of 10:

• AVT's Dividend Yield is rather good when compared to the industry average which is at 1.92. AVT pays more dividend than 96.67% of the companies in the same industry.
• On average, the dividend of AVT grows each year by 9.30%, which is quite nice.
• AVT has been paying a dividend for at least 10 years, so it has 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 35.64% of its income as dividend. This is a sustainable payout ratio.

Health Assessment of NASDAQ:AVT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:AVT scores a 7 out of 10:

• An Altman-Z score of 3.46 indicates that AVT is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.46, AVT is in the better half of the industry, outperforming 60.83% of the companies in the same industry.
• The Debt to FCF ratio of AVT is 2.36, which is a good value as it means it would take AVT, 2.36 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.36, AVT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
• Even though the debt/equity ratio score it not favorable for AVT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• AVT has a Current Ratio of 2.39. This indicates that AVT is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NASDAQ:AVT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AVT scores a 5 out of 10:

• AVT's Return On Equity of 6.56% is fine compared to the rest of the industry. AVT outperforms 62.50% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 7.34%, AVT is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for AVT is above the industry average of 8.73%.
• 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.

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

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.