AVNET INC (NASDAQ:AVT) – A Reliable Dividend Stock Worth Considering

AVNET INC (NASDAQ:AVT) was identified by our Best Dividend Stocks screen, which looks for companies with strong dividend characteristics while maintaining solid profitability and financial health. AVT stands out with a high dividend rating, consistent payout history, and reasonable valuation, making it an interesting candidate for income-focused investors.

Dividend Strength

• Attractive Yield: AVT offers a dividend yield of 2.34%, which is above the industry average of 1.83%. This makes it more appealing than 96% of its peers in the Electronic Equipment, Instruments & Components sector.
• Reliable Growth: The company has increased its dividend at an annual rate of 9.30% over the past years, demonstrating a commitment to rewarding shareholders.
• Long Track Record: AVT has paid dividends for at least 10 consecutive years without reductions, indicating stability in its payout policy.
• Sustainable Payout: Only 35.81% of earnings are allocated to dividends, suggesting room for future increases without straining finances.

Profitability & Financial Health

• Decent Profitability: AVT holds a Profitability Rating of 5/10, supported by positive operating cash flow and improving margins. Its Return on Invested Capital (6.87%) outperforms 71% of industry peers.
• Solid Financial Health: With a Health Rating of 6/10, AVT maintains a manageable debt profile (Debt/Equity of 0.51) and a healthy Altman-Z score (3.50), reducing bankruptcy risk.
• Reasonable Valuation: Trading at a P/E of 14.29, AVT is priced below both the S&P 500 average (27.50) and most industry competitors, offering value for investors.

While recent earnings and revenue declines warrant caution, AVT’s strong dividend fundamentals, combined with stable profitability and financial health, make it a noteworthy option for dividend portfolios.

For further analysis, review the full fundamental report on AVT.

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Disclaimer

This is not investment advice. The observations here are based on available data at the time of writing, and investors should conduct their own research before making decisions.