Why NYSE:TGNA provides a good dividend, while having solid fundamentals.

Take a closer look at TEGNA INC (NYSE:TGNA), a stock of interest to dividend investors uncovered by our stock screener. NYSE:TGNA excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for NYSE:TGNA

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:TGNA scores a 7 out of 10:

• TGNA's Dividend Yield is a higher than the industry average which is at 4.44.
• The dividend of TGNA is nicely growing with an annual growth rate of 8.19%!
• 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.
• TGNA pays out 16.59% of its income as dividend. This is a sustainable payout ratio.
• TGNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Analyzing Health Metrics

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:TGNA was assigned a score of 6 for health:

• TGNA's Altman-Z score of 2.87 is amongst the best of the industry. TGNA outperforms 83.91% of its industry peers.
• TGNA has a better Debt to FCF ratio (6.15) than 66.67% of its industry peers.
• TGNA has a Current Ratio of 2.60. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.60, TGNA is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
• TGNA has a Quick Ratio of 2.60. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 2.60, TGNA is doing good in the industry, outperforming 79.31% of the companies in the same industry.

Profitability Analysis for NYSE:TGNA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TGNA scores a 7 out of 10:

• Looking at the Return On Assets, with a value of 6.85%, TGNA belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
• The Return On Equity of TGNA (17.17%) is better than 85.06% of its industry peers.
• The Return On Invested Capital of TGNA (7.52%) is better than 78.16% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TGNA is above the industry average of 7.03%.
• With an excellent Profit Margin value of 16.67%, TGNA belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
• With an excellent Operating Margin value of 22.20%, TGNA belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.

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

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

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.