Exploring NYSE:TEL's dividend characteristics.

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

Dividend Assessment of NYSE:TEL

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:TEL scores a 7 out of 10:

• TEL's Dividend Yield is rather good when compared to the industry average which is at 1.71. TEL pays more dividend than 92.74% of the companies in the same industry.
• On average, the dividend of TEL grows each year by 6.41%, which is quite nice.
• TEL has been paying a dividend for at least 10 years, so it has a reliable track record.
• TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
• 22.01% of the earnings are spent on dividend by TEL. This is a low number and sustainable payout ratio.
• TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Examination for NYSE:TEL

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:TEL has earned a 6 out of 10:

• TEL has an Altman-Z score of 4.83. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of TEL (4.83) is better than 79.03% of its industry peers.
• TEL has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
• TEL has a better Debt to FCF ratio (1.63) than 73.39% of its industry peers.
• TEL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Profitability

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:TEL scores a 7 out of 10:

• Looking at the Return On Assets, with a value of 14.37%, TEL belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
• With an excellent Return On Equity value of 25.24%, TEL belongs to the best of the industry, outperforming 95.97% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 12.60%, TEL belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for TEL is above the industry average of 9.42%.
• TEL has a better Profit Margin (20.69%) than 98.39% of its industry peers.
• Looking at the Operating Margin, with a value of 17.36%, TEL belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.

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Check the latest full fundamental report of TEL 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.