Is NYSE:ETN a Good Fit for Dividend Investing?

Unearth the potential of EATON CORP PLC (NYSE:ETN) as a dividend stock recommended by our stock screening tool. NYSE:ETN maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Analysis for NYSE:ETN

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:ETN earns a 7 out of 10:

• ETN's Dividend Yield is rather good when compared to the industry average which is at 2.82. ETN pays more dividend than 88.64% of the companies in the same industry.
• ETN has paid a dividend for at least 10 years, which is a reliable track record.
• ETN has not decreased their dividend for at least 10 years, which is a reliable track record.
• ETN pays out 39.12% of its income as dividend. This is a sustainable payout ratio.
• ETN's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Insights: NYSE:ETN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ETN was assigned a score of 7 for health:

• ETN has an Altman-Z score of 5.80. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
• ETN's Altman-Z score of 5.80 is amongst the best of the industry. ETN outperforms 85.23% of its industry peers.
• ETN has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as ETN would need 2.91 years to pay back of all of its debts.
• ETN has a Debt to FCF ratio of 2.91. This is in the better half of the industry: ETN outperforms 76.14% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that ETN is not too dependend on debt financing.
• ETN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Analysis for NYSE:ETN

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. NYSE:ETN scores a 9 out of 10:

• With an excellent Return On Assets value of 9.60%, ETN belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
• With an excellent Return On Equity value of 19.71%, ETN belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
• ETN's Return On Invested Capital of 12.42% is amongst the best of the industry. ETN outperforms 92.05% of its industry peers.
• The last Return On Invested Capital (12.42%) for ETN is above the 3 year average (9.14%), which is a sign of increasing profitability.
• ETN has a better Profit Margin (15.31%) than 94.32% of its industry peers.
• ETN's Profit Margin has improved in the last couple of years.
• The Operating Margin of ETN (18.71%) is better than 94.32% of its industry peers.
• In the last couple of years the Operating Margin of ETN has grown nicely.
• With an excellent Gross Margin value of 37.83%, ETN belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
• ETN's Gross 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.

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

Disclaimer

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.