TE Connectivity Ltd. (NYSE:TEL) Announces Dividend Increase – $0.65 Per Share

TE Connectivity Ltd. (NYSE:TELGet Free Report) declared a quarterly dividend on Wednesday, March 13th, Zacks reports. Investors of record on Friday, May 24th will be given a dividend of 0.65 per share by the electronics maker on Friday, June 7th. This represents a $2.60 annualized dividend and a dividend yield of 1.86%. The ex-dividend date is Thursday, May 23rd. This is an increase from TE Connectivity’s previous quarterly dividend of $0.59.

TE Connectivity has increased its dividend by an average of 7.0% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. TE Connectivity has a payout ratio of 28.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect TE Connectivity to earn $8.27 per share next year, which means the company should continue to be able to cover its $2.36 annual dividend with an expected future payout ratio of 28.5%.

TE Connectivity Stock Down 1.4 %

Shares of NYSE:TEL opened at $139.45 on Friday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.16 and a current ratio of 1.86. The company’s fifty day moving average is $139.81 and its two-hundred day moving average is $132.66. TE Connectivity has a 1-year low of $115.00 and a 1-year high of $146.84. The stock has a market capitalization of $43.34 billion, a price-to-earnings ratio of 13.23, a price-to-earnings-growth ratio of 2.01 and a beta of 1.40.

TE Connectivity (NYSE:TELGet Free Report) last released its quarterly earnings results on Wednesday, January 24th. The electronics maker reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.13. The company had revenue of $3.83 billion during the quarter, compared to analysts’ expectations of $3.87 billion. TE Connectivity had a return on equity of 18.93% and a net margin of 20.69%. The company’s revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.53 earnings per share. Equities analysts anticipate that TE Connectivity will post 7.57 EPS for the current year.

Wall Street Analysts Forecast Growth

TEL has been the topic of a number of recent analyst reports. Stifel Nicolaus lifted their price target on shares of TE Connectivity from $140.00 to $145.00 and gave the company a “hold” rating in a research report on Thursday, January 25th. Citigroup started coverage on shares of TE Connectivity in a research note on Friday, January 5th. They set a “neutral” rating and a $146.00 price target on the stock. Robert W. Baird increased their target price on TE Connectivity from $147.00 to $155.00 and gave the stock an “outperform” rating in a report on Thursday, January 25th. Wells Fargo & Company initiated coverage on shares of TE Connectivity in a report on Friday, December 15th. They set an “equal weight” rating and a $144.00 price target for the company. Finally, StockNews.com raised TE Connectivity from a “buy” rating to a “strong-buy” rating in a research note on Thursday. Five investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $146.67.

Check Out Our Latest Stock Report on TE Connectivity

Insider Buying and Selling

In other news, insider Steven T. Merkt sold 99,777 shares of the company’s stock in a transaction dated Monday, January 29th. The shares were sold at an average price of $144.00, for a total value of $14,367,888.00. Following the sale, the insider now directly owns 30,459 shares of the company’s stock, valued at approximately $4,386,096. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.86% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On TE Connectivity

Several hedge funds have recently bought and sold shares of TEL. Vanguard Group Inc. lifted its position in shares of TE Connectivity by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 27,621,186 shares of the electronics maker’s stock valued at $3,617,824,000 after acquiring an additional 308,580 shares during the period. State Street Corp increased its holdings in TE Connectivity by 19.5% in the 1st quarter. State Street Corp now owns 14,149,636 shares of the electronics maker’s stock valued at $1,851,648,000 after buying an additional 2,309,835 shares during the period. Price T Rowe Associates Inc. MD raised its position in shares of TE Connectivity by 17.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,070,140 shares of the electronics maker’s stock valued at $1,414,855,000 after buying an additional 1,492,889 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of TE Connectivity by 1.2% during the 1st quarter. Geode Capital Management LLC now owns 5,332,553 shares of the electronics maker’s stock worth $697,471,000 after acquiring an additional 62,134 shares during the period. Finally, Norges Bank acquired a new position in TE Connectivity during the fourth quarter valued at approximately $584,131,000. 90.75% of the stock is currently owned by institutional investors and hedge funds.

TE Connectivity announced that its Board of Directors has initiated a share repurchase plan on Tuesday, December 12th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the electronics maker to buy up to 3.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

About TE Connectivity

(Get Free Report)

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

Further Reading

Dividend History for TE Connectivity (NYSE:TEL)

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