Why the dividend investor may take a look at NYSE:LEA.

Consider LEAR CORP (NYSE:LEA) as a top pick for dividend investors, identified by our stock screening tool. NYSE:LEA shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

ChartMill's Evaluation of Dividend

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:LEA has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.62, LEA pays a better dividend. On top of this LEA pays more dividend than 80.49% of the companies listed in the same industry.
• The dividend of LEA is nicely growing with an annual growth rate of 9.07%!
• LEA has been paying a dividend for at least 10 years, so it has a reliable track record.
• LEA pays out 32.59% of its income as dividend. This is a sustainable payout ratio.
• LEA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for NYSE:LEA

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LEA has achieved a 5 out of 10:

• LEA has an Altman-Z score of 3.02. This indicates that LEA is financially healthy and has little risk of bankruptcy at the moment.
• LEA's Altman-Z score of 3.02 is fine compared to the rest of the industry. LEA outperforms 60.98% of its industry peers.
• LEA has a better Debt to FCF ratio (4.71) than 68.29% of its industry peers.

Profitability Insights: NYSE:LEA

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:LEA was assigned a score of 5 for profitability:

• LEA has a better Return On Assets (3.85%) than 65.85% of its industry peers.
• Looking at the Return On Equity, with a value of 11.58%, LEA is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
• LEA's Return On Invested Capital of 9.04% is fine compared to the rest of the industry. LEA outperforms 70.73% of its industry peers.
• The 3 year average ROIC (6.79%) for LEA is below the current ROIC(9.04%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 2.45%, LEA is doing good in the industry, outperforming 60.98% of the companies in the same industry.

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

Our latest full fundamental report of LEA 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.