TE Connectivity Ltd. (NYSE:TEL) to Issue $0.78 Quarterly Dividend

Key Points

• TE Connectivity declared a quarterly dividend of $0.78 per share, payable December 11 to shareholders of record on November 20. The dividend implies an annualized payout of $3.12 and a 1.5% yield.
• The company has raised its dividend for 12 consecutive years, with a current payout ratio of 34.6%; analysts expect that ratio to decline to 23.9% based on projected earnings.
• TE Connectivity exceeded quarterly earnings and revenue expectations, reporting $2.94 in EPS and $5.16 billion in revenue. Analysts maintain a consensus “Moderate Buy” rating with a $252 price target.

TE Connectivity Ltd. (NYSE:TEL - Get Free Report) announced a quarterly dividend on Wednesday, September 16th. Investors of record on Friday, November 20th will be given a dividend of 0.78 per share by the electronics maker on Friday, December 11th. This represents a c) dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, November 20th.

TE Connectivity has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 12 years. TE Connectivity has a payout ratio of 34.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect TE Connectivity to earn $13.06 per share next year, which means the company should continue to be able to cover its $3.12 annual dividend with an expected future payout ratio of 23.9%.

TE Connectivity Price Performance

TEL stock opened at $202.03 on Thursday. TE Connectivity has a 52 week low of $190.27 and a 52 week high of $252.56. The firm has a market capitalization of $58.49 billion, a P/E ratio of 19.81, a price-to-earnings-growth ratio of 1.35 and a beta of 1.16. The company has a fifty day simple moving average of $206.62 and a two-hundred day simple moving average of $208.91. The company has a quick ratio of 1.23, a current ratio of 1.88 and a debt-to-equity ratio of 0.42.

TE Connectivity (NYSE:TEL - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The electronics maker reported $2.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.85 by $0.09. TE Connectivity had a net margin of 15.61% and a return on equity of 24.59%. The firm had revenue of $5.16 billion for the quarter, compared to analysts' expectations of $5.01 billion. During the same period in the prior year, the company earned $2.27 EPS. The business's revenue was up 13.8% compared to the same quarter last year. TE Connectivity has set its Q4 2026 guidance at 3.050-3.050 EPS. Analysts anticipate that TE Connectivity will post 11.48 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

TEL has been the subject of several analyst reports. Zacks Research lowered TE Connectivity from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 8th. Barclays boosted their target price on TE Connectivity from $297.00 to $300.00 and gave the company an "overweight" rating in a research report on Monday, June 15th. Wells Fargo & Company raised their price target on TE Connectivity from $209.00 to $220.00 and gave the stock a "cautious" rating in a research report on Friday, September 11th. Robert W. Baird dropped their price objective on shares of TE Connectivity from $240.00 to $225.00 and set an "outperform" rating for the company in a research note on Thursday, July 23rd. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of TE Connectivity in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $252.00.

About TE Connectivity

TE Connectivity Ltd. NYSE: TEL designs and manufactures connectivity and sensor products used in transportation, industrial equipment, communications systems, data centers, aerospace and defense, medical technology, energy infrastructure, and consumer applications. Its products help transmit power, data and signals between components and systems.

The company's product portfolio includes connectors, terminals, relays, sensors, antennas, cable assemblies, circuit-protection devices, heat-shrink products and other components for electronic and electrical systems.

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