ExploringTE CONNECTIVITY PLC (NYSE:TEL)'s dividend characteristics.

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.

How do we evaluate the Dividend for NYSE:TEL?

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:TEL has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.00, TEL pays a better dividend. On top of this TEL pays more dividend than 91.87% 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.

What does the Health looks like 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 7 for health provides valuable insights:

• TEL has an Altman-Z score of 4.75. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.75, TEL is doing good in the industry, outperforming 76.42% of the companies in the same industry.
• The Debt to FCF ratio of TEL is 1.45, which is an excellent value as it means it would take TEL, only 1.45 years of fcf income to pay off all of its debts.
• TEL's Debt to FCF ratio of 1.45 is fine compared to the rest of the industry. TEL outperforms 79.67% 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.
• 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.

How do we evaluate the Profitability for NYSE:TEL?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TEL has achieved a 8:

• TEL has a better Return On Assets (8.55%) than 88.62% of its industry peers.
• The Return On Equity of TEL (15.46%) is better than 85.37% of its industry peers.
• With an excellent Return On Invested Capital value of 14.02%, TEL belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for TEL is significantly above the industry average of 8.76%.
• TEL has a better Profit Margin (12.10%) than 87.80% of its industry peers.
• In the last couple of years the Profit Margin of TEL has grown nicely.
• With an excellent Operating Margin value of 18.93%, TEL belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
• TEL's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 34.65%, TEL is doing good in the industry, outperforming 60.16% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of TEL

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.