Is NYSE:TEL a Good Fit for Dividend Investing?

Unearth the potential of TE CONNECTIVITY PLC (NYSE:TEL) as a dividend stock recommended by our stock screening tool. NYSE:TEL maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

How do we evaluate the Dividend for 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 1.86, TEL pays a better dividend. On top of this TEL pays more dividend than 92.80% of the companies listed in the same industry.
• The dividend of TEL is nicely growing with an annual growth rate of 6.79%!
• 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.
• TEL pays out 23.80% of its income as dividend. This is a sustainable payout ratio.

Health Analysis for NYSE:TEL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TEL has received a 8 out of 10:

• TEL has an Altman-Z score of 4.76. 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 4.76, TEL is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
• TEL has a debt to FCF ratio of 1.50. This is a very positive value and a sign of high solvency as it would only need 1.50 years to pay back of all of its debts.
• The Debt to FCF ratio of TEL (1.50) is better than 79.20% of its industry peers.
• TEL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for TEL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• TEL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TEL, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 13.97%, TEL belongs to the top of the industry, outperforming 95.20% of the companies in the same industry.
• The Return On Equity of TEL (25.84%) is better than 94.40% of its industry peers.
• The Return On Invested Capital of TEL (13.83%) is better than 92.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TEL is significantly above the industry average of 8.73%.
• With an excellent Profit Margin value of 20.15%, TEL belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of TEL has grown nicely.
• The Operating Margin of TEL (18.83%) is better than 97.60% of its industry peers.
• In the last couple of years the Operating Margin of TEL has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

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.