TENARIS SA-ADR (NYSE:TS) – A Strong Dividend Stock with Solid Fundamentals

TENARIS SA-ADR (NYSE:TS) stands out as a compelling choice for dividend investors, according to our screening criteria. The company combines an attractive dividend yield with strong profitability and financial health, making it a well-rounded candidate for income-focused portfolios.

Key Strengths for Dividend Investors

• High Dividend Yield: TS offers a yearly dividend yield of 4.84%, significantly above the S&P 500 average of 2.36%. This places it in the top tier of its industry, outperforming 87% of peers.
• Reliable Dividend Growth: The company has increased its dividend at an average annual rate of 10.42% over the past years, demonstrating a commitment to rewarding shareholders.
• Sustainable Payout Ratio: With a payout ratio of 41.95%, TS maintains a balance between returning income to shareholders and reinvesting in operations.

Profitability and Financial Health

Beyond dividends, TS excels in profitability and financial stability:

• Strong Profit Margins: The company’s profit margin of 15.05% ranks in the top 89% of its industry, supported by improving operating and gross margins.
• Excellent Financial Health: TS earns a perfect 10/10 in the ChartMill Health Rating, reflecting low debt levels (Debt/Equity of 0.01) and strong liquidity (Current Ratio of 4.08).
• Attractive Valuation: Trading at a P/E ratio of 7.93, TS appears undervalued compared to both industry peers and the broader market.

For a deeper dive into the company’s fundamentals, review the full analysis of TENARIS SA-ADR.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.