Balancing Dividends and Fundamentals: The Case of NYSE:TEL.

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

Deciphering NYSE:TEL's Dividend Rating

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:

• TEL's Dividend Yield is rather good when compared to the industry average which is at 1.67. TEL pays more dividend than 92.80% of the companies in the same industry.
• On average, the dividend of TEL grows each year by 6.41%, which is quite nice.
• 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.

Health Insights: NYSE:TEL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TEL has earned a 7 out of 10:

• An Altman-Z score of 4.77 indicates that TEL is not in any danger for bankruptcy at the moment.
• The Altman-Z score of TEL (4.77) is better than 75.20% of its industry peers.
• TEL has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of 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 74.40% of its industry peers.
• A Debt/Equity ratio of 0.31 indicates that TEL is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for TEL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

How do we evaluate the Profitability for NYSE:TEL?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TEL, the assigned 7 is a significant indicator of profitability:

• With an excellent Return On Assets value of 8.80%, TEL belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
• TEL has a Return On Equity of 16.54%. This is amongst the best in the industry. TEL outperforms 88.80% of its industry peers.
• TEL has a Return On Invested Capital of 13.39%. This is amongst the best in the industry. TEL outperforms 88.00% 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 9.62%.
• TEL has a Profit Margin of 11.91%. This is amongst the best in the industry. TEL outperforms 91.20% of its industry peers.
• Looking at the Operating Margin, with a value of 16.68%, TEL belongs to the top of the industry, outperforming 92.80% 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 TEL 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.