Is NYSE:LEA a Good Fit for Dividend Investing?

Discover LEAR CORP (NYSE:LEA)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:LEA showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

A Closer Look at Dividend for NYSE:LEA

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:LEA was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 2.91, LEA pays a better dividend. On top of this LEA pays more dividend than 80.49% of the companies listed in the same industry.
• On average, the dividend of LEA grows each year by 9.07%, which is quite nice.
• LEA has paid a dividend for at least 10 years, which is a reliable track record.
• LEA pays out 32.59% of its income as dividend. This is a sustainable payout ratio.
• LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:LEA

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:LEA has earned a 5 out of 10:

• An Altman-Z score of 3.01 indicates that LEA is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.01, LEA is doing good in the industry, outperforming 63.41% of the companies in the same industry.
• The Debt to FCF ratio of LEA (4.71) is better than 68.29% of its industry peers.

Assessing Profitability for NYSE:LEA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LEA has achieved a 5:

• LEA has a better Return On Assets (3.85%) than 65.85% of its industry peers.
• LEA's Return On Equity of 11.58% is fine compared to the rest of the industry. LEA outperforms 70.73% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 9.04%, LEA is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
• The 3 year average ROIC (6.79%) for LEA is below the current ROIC(9.04%), indicating increased profibility in the last year.
• LEA has a better Profit Margin (2.45%) than 60.98% of its industry peers.

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

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

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.