TE CONNECTIVITY PLC (NYSE:TEL) – A Reliable Dividend Stock with Strong Fundamentals

TE CONNECTIVITY PLC (NYSE:TEL) stands out as a solid choice for dividend investors, offering a combination of reliable payouts, strong profitability, and sound financial health. The company, which specializes in connectivity and sensor solutions, has been identified by our dividend screener due to its high dividend rating and stable fundamentals.

Dividend Strength

• Consistent Payouts: TEL has maintained dividend payments for at least 10 years without reductions, demonstrating reliability.
• Growing Dividends: The company has increased its dividend at an average annual rate of 6.79%, outpacing many peers.
• Sustainable Payout Ratio: At 55.9%, the payout ratio is manageable, supported by steady earnings growth.
• Competitive Yield: With a 1.75% yield, TEL outperforms 91.2% of its industry peers, making it an attractive option for income-focused investors.

Profitability & Financial Health

• Strong Margins: TEL boasts an Operating Margin of 19.14%, ranking in the top 3% of its sector.
• High Return on Capital: A Return on Invested Capital (ROIC) of 14.59% indicates efficient use of capital.
• Solid Balance Sheet: The company has a Debt-to-Equity ratio of 0.27, well below concerning levels, and an Altman-Z score of 4.57, signaling low bankruptcy risk.

Valuation & Growth

While TEL trades at a P/E of 20.95, slightly below the industry average, its strong profitability justifies the valuation. Analysts expect 9.06% annual EPS growth, reinforcing dividend sustainability.

For a deeper analysis, review the full fundamental report on TEL.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.