Why the dividend investor may take a look at NYSE:TEL.

Our stock screener has singled out TE CONNECTIVITY LTD (NYSE:TEL) as a promising choice for dividend investors. NYSE:TEL not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: NYSE:TEL

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:TEL has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 1.87, TEL pays a better dividend. On top of this TEL pays more dividend than 92.74% of the companies listed in the same industry.
• On average, the dividend of TEL grows each year by 6.41%, which is quite nice.
• TEL has paid a dividend for at least 10 years, which is a reliable track record.
• TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
• TEL pays out 37.96% of its income as dividend. This is a sustainable payout ratio.
• TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TEL has achieved a 7 out of 10:

• TEL has an Altman-Z score of 4.76. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• TEL's Altman-Z score of 4.76 is fine compared to the rest of the industry. TEL outperforms 76.61% of its industry peers.
• TEL has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
• TEL has a Debt to FCF ratio of 1.75. This is in the better half of the industry: TEL outperforms 74.19% of its industry peers.
• A Debt/Equity ratio of 0.31 indicates that TEL is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for TEL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

What does the Profitability looks like for NYSE:TEL

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:TEL has achieved a 7:

• TEL's Return On Assets of 8.80% is amongst the best of the industry. TEL outperforms 91.13% of its industry peers.
• TEL's Return On Equity of 16.54% is amongst the best of the industry. TEL outperforms 88.71% of its industry peers.
• The Return On Invested Capital of TEL (13.39%) is better than 87.90% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TEL is above the industry average of 9.63%.
• With an excellent Profit Margin value of 11.91%, TEL belongs to the best of the industry, outperforming 91.13% of the companies in the same industry.
• TEL has a better Operating Margin (16.68%) than 91.94% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.