TEGNA INC (NYSE:TGNA) – A Dividend Stock Worth Considering

TEGNA INC (NYSE:TGNA) stands out as a compelling choice for dividend investors, according to our Best Dividend stock screen. The company combines a solid dividend profile with strong profitability and reasonable financial health, making it a candidate for income-focused portfolios.

Dividend Strength

• Attractive Yield: TGNA offers a 3.04% dividend yield, which is above the S&P 500 average of 2.44%. It also ranks favorably within its industry, outperforming 80% of peers.
• Consistent Growth: The company has increased its dividend at an annualized rate of 11.34% over the past five years, demonstrating a commitment to rewarding shareholders.
• Reliable Track Record: TGNA has paid dividends for at least 10 consecutive years without reductions, indicating stability in its payout policy.
• Sustainable Payout: Only 17.48% of earnings are allocated to dividends, suggesting room for future increases without straining finances.

Profitability & Valuation

• Strong Margins: TGNA boasts an operating margin of 24.66%, ranking in the top tier of its industry. Its return on equity (15.35%) and return on invested capital (9.33%) further highlight efficient capital use.
• Undervalued Metrics: With a P/E ratio of 5.53, TGNA trades at a significant discount to both industry and S&P 500 averages, presenting a potential value opportunity.

Financial Health

• Manageable Debt: While TGNA carries a debt-to-equity ratio of 0.83, its Altman-Z score (2.84) suggests limited near-term bankruptcy risk. The company has also reduced shares outstanding over time, improving per-share metrics.
• Adequate Liquidity: A current ratio of 1.40 indicates sufficient short-term liquidity to meet obligations.

For a deeper dive into TGNA’s fundamentals, review the full report here.

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Disclaimer

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