Analyzing NYSE:TEL's Dividend Potential.

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

Evaluating Dividend: 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:

• Compared to an average industry Dividend Yield of 1.67, TEL pays a better dividend. On top of this TEL pays more dividend than 93.65% 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 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.
• 21.47% of the earnings are spent on dividend by TEL. This is a low number and sustainable payout ratio.
• The dividend of TEL is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:TEL

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TEL scores a 6 out of 10:

• TEL has an Altman-Z score of 4.74. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.74, TEL is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
• The Debt to FCF ratio of TEL is 1.57, which is an excellent value as it means it would take TEL, only 1.57 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.57, TEL is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
• A Debt/Equity ratio of 0.24 indicates that TEL is not too dependend on debt financing.

Understanding NYSE:TEL's Profitability

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:

• The Return On Assets of TEL (15.00%) is better than 97.62% of its industry peers.
• TEL has a better Return On Equity (27.50%) than 96.03% of its industry peers.
• TEL has a Return On Invested Capital of 13.95%. This is amongst the best in the industry. TEL outperforms 90.48% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TEL is significantly above the industry average of 8.97%.
• With an excellent Profit Margin value of 21.63%, TEL belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 18.02%, TEL belongs to the top of the industry, outperforming 96.03% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of TEL

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.