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

Our stock screening tool has identified TE CONNECTIVITY LTD (NYSE:TEL) as a strong dividend contender with robust fundamentals. NYSE:TEL exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Insights: NYSE:TEL

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:TEL was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 1.66, TEL pays a better dividend. On top of this TEL pays more dividend than 92.91% of the companies listed in the same industry.
• The dividend of TEL is nicely growing with an annual growth rate of 6.41%!
• TEL has paid a dividend for at least 10 years, which is 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.
• 21.56% 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.

How We Gauge 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 4.91 indicates that TEL is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TEL (4.91) is better than 77.17% of its industry peers.
• TEL has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.44, TEL is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
• A Debt/Equity ratio of 0.23 indicates that TEL is not too dependend on debt financing.

Profitability Assessment of NYSE:TEL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TEL has earned a 7 out of 10:

• The Return On Assets of TEL (15.15%) is better than 96.85% of its industry peers.
• With an excellent Return On Equity value of 27.46%, TEL belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
• TEL has a Return On Invested Capital of 14.22%. This is amongst the best in the industry. TEL outperforms 90.55% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TEL is above the industry average of 9.34%.
• TEL's Profit Margin of 21.94% is amongst the best of the industry. TEL outperforms 98.43% of its industry peers.
• TEL has a better Operating Margin (18.51%) than 96.06% of its industry peers.

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

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

Disclaimer

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.