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

Discover TE CONNECTIVITY PLC (NYSE:TEL)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:TEL showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Understanding NYSE:TEL's Dividend

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 1.87. TEL pays more dividend than 94.17% of the companies in the same industry.
• The dividend of TEL is nicely growing with an annual growth rate of 6.79%!
• 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.
• TEL pays out 23.80% of its income as dividend. This is a sustainable payout ratio.
• TEL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for NYSE:TEL

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

• An Altman-Z score of 4.82 indicates that TEL is not in any danger for bankruptcy at the moment.
• TEL's Altman-Z score of 4.82 is fine compared to the rest of the industry. TEL outperforms 71.67% of its industry peers.
• The Debt to FCF ratio of TEL is 1.50, which is an excellent value as it means it would take TEL, only 1.50 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 1.50, TEL is doing good in the industry, outperforming 77.50% of the companies in the same industry.
• TEL has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
• The current and quick ratio evaluation for TEL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NYSE:TEL

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:

• With an excellent Return On Assets value of 13.97%, TEL belongs to the best of the industry, outperforming 94.17% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 25.84%, TEL belongs to the top of the industry, outperforming 94.17% of the companies in the same industry.
• TEL has a better Return On Invested Capital (13.83%) than 90.83% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for TEL is significantly above the industry average of 9.03%.
• TEL's Profit Margin of 20.15% is amongst the best of the industry. TEL outperforms 95.83% of its industry peers.
• TEL's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 18.83%, TEL belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
• In the last couple of years the Operating Margin of TEL has grown nicely.

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

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.