Analyzing NYSE:TEL's Dividend Potential.

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.

How do we evaluate the Dividend for NYSE:TEL?

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:TEL earns a 7 out of 10:

• TEL's Dividend Yield is rather good when compared to the industry average which is at 1.75. TEL pays more dividend than 92.80% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 21.47% 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.

Assessing Health for 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:

• An Altman-Z score of 4.72 indicates that TEL is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.72, TEL is in the better half of the industry, outperforming 76.00% 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.
• The Debt to FCF ratio of TEL (1.57) is better than 73.60% of its industry peers.
• TEL has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: NYSE:TEL

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. NYSE:TEL was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of 15.00%, TEL belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 27.50%, TEL belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
• TEL has a Return On Invested Capital of 13.95%. This is amongst the best in the industry. TEL outperforms 89.60% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TEL is significantly above the industry average of 9.20%.
• TEL has a Profit Margin of 21.63%. This is amongst the best in the industry. TEL outperforms 98.40% of its industry peers.
• With an excellent Operating Margin value of 18.02%, TEL belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.

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

Check the latest full fundamental report of TEL for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.