Uncovering Dividend Opportunities with EATON CORP PLC (NYSE:ETN).

Take a closer look at EATON CORP PLC (NYSE:ETN), a stock of interest to dividend investors uncovered by our stock screener. ETN excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Analysis for ETN

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. ETN has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.04, ETN pays a better dividend. On top of this ETN pays more dividend than 88.17% of the companies listed in the same industry.
• ETN has been paying a dividend for at least 10 years, so it has a reliable track record.
• ETN has not decreased their dividend for at least 10 years, which is a reliable track record.
• ETN pays out 39.54% 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 Analysis for ETN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. ETN has received a 7 out of 10:

• ETN has an Altman-Z score of 4.86. This indicates that ETN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of ETN (4.86) is better than 89.25% of its industry peers.
• The Debt to FCF ratio of ETN is 2.60, which is a good value as it means it would take ETN, 2.60 years of fcf income to pay off all of its debts.
• ETN has a Debt to FCF ratio of 2.60. This is in the better half of the industry: ETN outperforms 78.49% of its industry peers.
• A Debt/Equity ratio of 0.46 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.

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. ETN was assigned a score of 9 for profitability:

• With an excellent Return On Assets value of 9.89%, ETN belongs to the best of the industry, outperforming 92.47% of the companies in the same industry.
• The Return On Equity of ETN (20.52%) is better than 93.55% of its industry peers.
• ETN has a Return On Invested Capital of 12.88%. This is amongst the best in the industry. ETN outperforms 92.47% of its industry peers.
• The 3 year average ROIC (10.83%) for ETN is below the current ROIC(12.88%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 15.25%, ETN belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
• ETN's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 18.88%, ETN belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
• ETN's Operating Margin has improved in the last couple of years.
• ETN has a Gross Margin of 38.20%. This is amongst the best in the industry. ETN outperforms 87.10% of its industry peers.
• In the last couple of years the Gross Margin of ETN has grown nicely.

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

Our latest full fundamental report of ETN 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.