Balancing Dividends and Fundamentals: The Case of NYSE:TGNA.

Last update: Jul 11, 2024

Our stock screening tool has identified TEGNA INC (NYSE:TGNA) as a strong dividend contender with robust fundamentals. NYSE:TGNA exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Analyzing Dividend Metrics

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:TGNA has been assigned a 8 for dividend:

Compared to an average industry Dividend Yield of 4.50, TGNA pays a better dividend. On top of this TGNA pays more dividend than 86.96% of the companies listed in the same industry.
TGNA's Dividend Yield is a higher than the S&P500 average which is at 2.38.
On average, the dividend of TGNA grows each year by 8.19%, which is quite nice.
TGNA has paid a dividend for at least 10 years, which is a reliable track record.
As TGNA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
14.64% of the earnings are spent on dividend by TGNA. This is a low number and sustainable payout ratio.
TGNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing Health for NYSE:TGNA

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:TGNA scores a 6 out of 10:

With a decent Altman-Z score value of 2.75, TGNA is doing good in the industry, outperforming 78.26% of the companies in the same industry.
The Debt to FCF ratio of TGNA (7.52) is better than 64.13% of its industry peers.
A Current Ratio of 2.53 indicates that TGNA has no problem at all paying its short term obligations.
TGNA has a Current ratio of 2.53. This is in the better half of the industry: TGNA outperforms 78.26% of its industry peers.
TGNA has a Quick Ratio of 2.53. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
TGNA's Quick ratio of 2.53 is fine compared to the rest of the industry. TGNA outperforms 78.26% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:TGNA has earned a 6 out of 10:

The Return On Assets of TGNA (7.88%) is better than 88.04% of its industry peers.
TGNA's Return On Equity of 20.02% is amongst the best of the industry. TGNA outperforms 89.13% of its industry peers.
TGNA has a Return On Invested Capital of 6.77%. This is in the better half of the industry: TGNA outperforms 76.09% of its industry peers.
TGNA has a Profit Margin of 19.42%. This is amongst the best in the industry. TGNA outperforms 91.30% of its industry peers.
TGNA has a better Operating Margin (20.29%) than 91.30% of its industry peers.

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

Check the latest full fundamental report of TGNA for a complete fundamental analysis.

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.