Why NYSE:TGNA provides a good dividend, while having solid fundamentals.

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

Understanding NYSE:TGNA's Dividend

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:TGNA has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 4.34, TGNA pays a bit more dividend than its industry peers.
• The dividend of TGNA is nicely growing with an annual growth rate of 8.19%!
• TGNA has been paying a dividend for at least 10 years, so it has a reliable track record.
• As TGNA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• 16.59% of the earnings are spent on dividend by TGNA. This is a low number and sustainable payout ratio.
• TGNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing Health Metrics for NYSE:TGNA

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:TGNA has received a 6 out of 10:

• Looking at the Altman-Z score, with a value of 2.88, TGNA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• The Debt to FCF ratio of TGNA (6.15) is better than 67.78% of its industry peers.
• TGNA has a Current Ratio of 2.60. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
• TGNA has a better Current ratio (2.60) than 77.78% of its industry peers.
• A Quick Ratio of 2.60 indicates that TGNA has no problem at all paying its short term obligations.
• TGNA has a Quick ratio of 2.60. This is in the better half of the industry: TGNA outperforms 78.89% of its industry peers.

Analyzing Profitability Metrics

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:TGNA has achieved a 7:

• TGNA's Return On Assets of 6.85% is amongst the best of the industry. TGNA outperforms 88.89% of its industry peers.
• With an excellent Return On Equity value of 17.17%, TGNA belongs to the best of the industry, outperforming 87.78% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 7.52%, TGNA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for TGNA is above the industry average of 6.89%.
• TGNA's Profit Margin of 16.67% is amongst the best of the industry. TGNA outperforms 92.22% of its industry peers.
• TGNA has a better Operating Margin (22.20%) than 95.56% of its industry peers.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.