Is NYSE:LEA suited for dividend investing?

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.

Dividend Analysis for NYSE:LEA

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:LEA has been awarded a 7 for its dividend quality:

• LEA's Dividend Yield is rather good when compared to the industry average which is at 2.72. LEA pays more dividend than 83.33% of the companies 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.
• The dividend of LEA is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Insights: NYSE:LEA

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LEA has received a 5 out of 10:

• LEA has a better Altman-Z score (2.98) than 61.90% of its industry peers.
• LEA's Debt to FCF ratio of 4.71 is fine compared to the rest of the industry. LEA outperforms 69.05% of its industry peers.

Assessing Profitability for NYSE:LEA

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:LEA has achieved a 5:

• LEA has a better Return On Assets (3.85%) than 66.67% of its industry peers.
• LEA has a better Return On Equity (11.58%) than 71.43% of its industry peers.
• LEA has a better Return On Invested Capital (9.04%) than 71.43% of its industry peers.
• The last Return On Invested Capital (9.04%) for LEA is above the 3 year average (6.79%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 2.45%, LEA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.