Why NYSE:TEL qualifies as a good dividend investing stock.

TE CONNECTIVITY PLC (NYSE:TEL) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:TEL scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend Metrics for NYSE:TEL

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:TEL has achieved a 8 out of 10:

• TEL's Dividend Yield is rather good when compared to the industry average which is at 1.88. TEL pays more dividend than 92.80% of the companies in the same industry.
• The dividend of TEL is nicely growing with an annual growth rate of 6.41%!
• 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.
• 21.56% 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.

ChartMill's Evaluation of Health

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:

• An Altman-Z score of 4.73 indicates that TEL is not in any danger for bankruptcy at the moment.
• TEL has a Altman-Z score of 4.73. This is in the better half of the industry: TEL outperforms 76.80% of its industry peers.
• The Debt to FCF ratio of TEL is 1.44, which is an excellent value as it means it would take TEL, only 1.44 years of fcf income to pay off all of its debts.
• TEL has a better Debt to FCF ratio (1.44) than 76.80% of its industry peers.
• TEL has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: NYSE:TEL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TEL, the assigned 7 is noteworthy for profitability:

• TEL's Return On Assets of 15.15% is amongst the best of the industry. TEL outperforms 96.80% of its industry peers.
• TEL has a better Return On Equity (27.46%) than 95.20% of its industry peers.
• The Return On Invested Capital of TEL (14.22%) is better than 90.40% of its industry peers.
• TEL had an Average Return On Invested Capital over the past 3 years of 14.34%. This is significantly above the industry average of 9.17%.
• Looking at the Profit Margin, with a value of 21.94%, TEL belongs to the top of the industry, outperforming 96.80% of the companies in the same industry.
• With an excellent Operating Margin value of 18.51%, TEL belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.

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

Our latest full fundamental report of TEL contains the most current fundamental analsysis.

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.