Why NYSE:TEL is a Top Pick for Dividend Investors.

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 We Gauge Dividend for 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 1.92, TEL pays a better dividend. On top of this TEL pays more dividend than 92.50% of the companies listed in the same industry.
• On average, the dividend of TEL grows each year by 6.79%, which is quite nice.
• 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.
• TEL pays out 39.94% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at 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:

• TEL has an Altman-Z score of 4.86. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• TEL's Altman-Z score of 4.86 is fine compared to the rest of the industry. TEL outperforms 74.17% of its industry peers.
• TEL has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
• TEL has a better Debt to FCF ratio (1.45) than 78.33% of its industry peers.
• TEL has a Debt/Equity ratio of 0.26. 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.

How do we evaluate the Profitability for NYSE:TEL?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TEL was assigned a score of 8 for profitability:

• TEL has a better Return On Assets (8.55%) than 86.67% of its industry peers.
• TEL has a Return On Equity of 15.46%. This is amongst the best in the industry. TEL outperforms 85.00% of its industry peers.
• With an excellent Return On Invested Capital value of 14.02%, TEL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for TEL is significantly above the industry average of 8.93%.
• Looking at the Profit Margin, with a value of 12.10%, TEL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• In the last couple of years the Profit Margin of TEL has grown nicely.
• Looking at the Operating Margin, with a value of 18.93%, TEL belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
• TEL's Operating Margin has improved in the last couple of years.

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

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.