Exploring NYSE:ETN's dividend characteristics.

EATON CORP PLC (NYSE:ETN) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:ETN demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Analysis for NYSE:ETN

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:ETN has received a 7 out of 10:

• ETN's Dividend Yield is rather good when compared to the industry average which is at 3.39. ETN pays more dividend than 87.36% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 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.

What does the Health looks like for 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 5.42. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
• ETN's Altman-Z score of 5.42 is amongst the best of the industry. ETN outperforms 83.91% of its industry peers.
• The Debt to FCF ratio of ETN is 2.91, which is a good value as it means it would take ETN, 2.91 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.91, ETN is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
• A Debt/Equity ratio of 0.45 indicates that ETN is not too dependend on debt financing.
• The current and quick ratio evaluation for ETN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ETN was assigned a score of 9 for profitability:

• Looking at the Return On Assets, with a value of 9.60%, ETN belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 19.71%, ETN belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
• The Return On Invested Capital of ETN (12.42%) is better than 91.95% of its industry peers.
• The 3 year average ROIC (9.14%) for ETN is below the current ROIC(12.42%), indicating increased profibility in the last year.
• The Profit Margin of ETN (15.31%) is better than 94.25% of its industry peers.
• In the last couple of years the Profit Margin of ETN has grown nicely.
• Looking at the Operating Margin, with a value of 18.71%, ETN belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
• In the last couple of years the Operating Margin of ETN has grown nicely.
• ETN has a better Gross Margin (37.83%) than 88.51% of its industry peers.
• 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.

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.