Why TEGNA INC (NYSE:TGNA) qualifies as a good dividend investing stock.

TEGNA INC (NYSE:TGNA) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. TGNA demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

ChartMill's Evaluation of Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. TGNA has received a 7 out of 10:

• TGNA's Dividend Yield is rather good when compared to the industry average which is at 5.15. TGNA pays more dividend than 80.41% of the companies in the same industry.
• TGNA's Dividend Yield is a higher than the S&P500 average which is at 2.43.
• On average, the dividend of TGNA grows each year by 11.34%, which is quite nice.
• TGNA has been paying a dividend for at least 10 years, so it has a reliable track record.
• TGNA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
• TGNA pays out 13.62% of its income as dividend. This is a sustainable payout ratio.

Understanding TGNA's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. TGNA scores a 7 out of 10:

• TGNA has a better Altman-Z score (2.93) than 84.54% of its industry peers.
• TGNA has a better Debt to FCF ratio (4.86) than 78.35% of its industry peers.
• A Current Ratio of 2.92 indicates that TGNA has no problem at all paying its short term obligations.
• TGNA's Current ratio of 2.92 is amongst the best of the industry. TGNA outperforms 88.66% of its industry peers.
• TGNA has a Quick Ratio of 2.92. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of TGNA (2.92) is better than 88.66% of its industry peers.

A Closer Look at Profitability for TGNA

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. TGNA has earned a 8 out of 10:

• With an excellent Return On Assets value of 8.16%, TGNA belongs to the best of the industry, outperforming 90.72% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 19.89%, TGNA belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
• TGNA's Return On Invested Capital of 8.96% is amongst the best of the industry. TGNA outperforms 84.54% of its industry peers.
• TGNA had an Average Return On Invested Capital over the past 3 years of 9.16%. This is above the industry average of 6.66%.
• TGNA has a better Profit Margin (19.26%) than 94.85% of its industry peers.
• In the last couple of years the Profit Margin of TGNA has grown nicely.
• The Operating Margin of TGNA (25.41%) is better than 97.94% of its industry peers.

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Check the latest full fundamental report of TGNA for a complete fundamental analysis.

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.