Is NYSE:TT a Good Fit for Dividend Investing?

Take a closer look at TRANE TECHNOLOGIES PLC (NYSE:TT), a stock of interest to dividend investors uncovered by our stock screener. NYSE:TT excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for NYSE:TT

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:TT scores a 6 out of 10:

• TT's Dividend Yield is a higher than the industry average which is at 2.66.
• The dividend of TT is nicely growing with an annual growth rate of 9.56%!
• TT has been paying a dividend for at least 10 years, so it has a reliable track record.
• TT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• TT pays out 34.01% of its income as dividend. This is a sustainable payout ratio.

Exploring NYSE:TT's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TT has earned a 4 out of 10:

• An Altman-Z score of 5.19 indicates that TT is not in any danger for bankruptcy at the moment.
• TT has a better Altman-Z score (5.19) than 68.89% of its industry peers.
• TT has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as TT would need 2.53 years to pay back of all of its debts.

How do we evaluate the Profitability for NYSE:TT?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TT, the assigned 7 is noteworthy for profitability:

• TT has a Return On Assets of 10.36%. This is in the better half of the industry: TT outperforms 66.67% of its industry peers.
• With an excellent Return On Equity value of 29.31%, TT belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
• TT has a Return On Invested Capital of 16.70%. This is in the better half of the industry: TT outperforms 73.33% of its industry peers.
• The last Return On Invested Capital (16.70%) for TT is above the 3 year average (12.73%), which is a sign of increasing profitability.
• TT's Profit Margin of 11.30% is fine compared to the rest of the industry. TT outperforms 73.33% of its industry peers.
• In the last couple of years the Profit Margin of TT has grown nicely.
• TT has a Operating Margin of 16.08%. This is in the better half of the industry: TT outperforms 68.89% of its industry peers.
• TT's Operating Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of TT contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.