Analyzing NYSE:TEL's Dividend Potential.

Unearth the potential of TE CONNECTIVITY LTD (NYSE:TEL) as a dividend stock recommended by our stock screening tool. NYSE:TEL maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Assessment of NYSE:TEL

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:TEL has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.99, TEL pays a better dividend. On top of this TEL pays more dividend than 92.74% of the companies listed in the same industry.
• The dividend of TEL is nicely growing with an annual growth rate of 6.41%!
• TEL has been paying a dividend for at least 10 years, so it has a reliable track record.
• TEL has not decreased their dividend for at least 10 years, which is a reliable track record.
• TEL pays out 37.96% of its income as dividend. This is a sustainable payout ratio.
• The dividend of TEL is growing, but earnings are growing more, so the dividend growth is sustainable.

Unpacking NYSE:TEL's Health Rating

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:TEL has received a 7 out of 10:

• TEL has an Altman-Z score of 4.59. This indicates that TEL is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.59, TEL is doing good in the industry, outperforming 75.81% of the companies in the same industry.
• The Debt to FCF ratio of TEL is 1.75, which is an excellent value as it means it would take TEL, only 1.75 years of fcf income to pay off all of its debts.
• TEL has a Debt to FCF ratio of 1.75. This is in the better half of the industry: TEL outperforms 73.39% of its industry peers.
• TEL has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
• Although TEL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Profitability Assessment of NYSE:TEL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TEL, the assigned 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 8.80%, TEL belongs to the top of the industry, outperforming 91.13% of the companies in the same industry.
• The Return On Equity of TEL (16.54%) is better than 87.90% of its industry peers.
• The Return On Invested Capital of TEL (13.39%) is better than 84.68% of its industry peers.
• TEL had an Average Return On Invested Capital over the past 3 years of 14.33%. This is above the industry average of 9.68%.
• With an excellent Profit Margin value of 11.91%, TEL belongs to the best of the industry, outperforming 91.13% of the companies in the same industry.
• TEL has a better Operating Margin (16.68%) than 91.94% of its industry peers.

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

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.