Is NYSE:TEL suited for dividend investing?

Consider TE CONNECTIVITY LTD (NYSE:TEL) as a top pick for dividend investors, identified by our stock screening tool. NYSE:TEL shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Examination for 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:

• TEL's Dividend Yield is rather good when compared to the industry average which is at 1.95. TEL pays more dividend than 92.86% 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 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.
• 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.

Health Examination for NYSE:TEL

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:TEL, the assigned 6 for health provides valuable insights:

• TEL has an Altman-Z score of 4.81. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• TEL's Altman-Z score of 4.81 is fine compared to the rest of the industry. TEL outperforms 75.40% 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 73.81% of the companies in the same industry.
• A Debt/Equity ratio of 0.23 indicates that TEL is not too dependend on debt financing.

Exploring NYSE:TEL's 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 15.15%, TEL belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
• TEL has a better Return On Equity (27.46%) than 95.24% of its industry peers.
• TEL's Return On Invested Capital of 14.22% is amongst the best of 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 9.31%.
• TEL's Profit Margin of 21.94% is amongst the best of the industry. TEL outperforms 97.62% of its industry peers.
• TEL has a better Operating Margin (18.51%) than 96.03% 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.

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.