Covered, compounding — a growth payer, not a yield payer. A 0.67% yield on a 25.02% trailing payout is a growth payer wearing a dividend: $0.125 a quarter on the post-split share count — $0.25 before the two-for-one split distributed Sep. 2, 2026 — raised from $0.0825 (post-split basis) in late 2025, for 14 years of growth. Q2 2026 revenue rose 55% year over year to $8.76 billion, so the payout takes only a quarter of earnings and leaves most profit to fund capacity and acquisitions.
Key risk: Acquisition and cycle risk — the $10.50 billion CommScope connectivity acquisition closed Jan. 2026, and interconnect demand across automotive, industrial and data communications can turn quickly.
Changes if: Trailing payout pushes well past 25.02%, or acquisition integration stalls the earnings growth that funds future raises. The cushion is wide; the growth rate is the tripwire.
- ✓Payout-coverage check: 25.02% trailing — the $0.50 indicated dividend leaves about three-quarters of earnings retained.
- !Yield check: 0.67% indicated — $0.125/qtr post-split × 4 at the $74.09 close on Oct. 23, 2026. Real and covered, but thin: this card compounds through growth and buybacks more than through current income.
- ✓Dividend growth check: 14 years of growth; the post-split quarterly rate of $0.125 follows the Oct. 2025 increase (51.5% on a post-split basis, from $0.0825), with the two-for-one split distributed Sep. 2, 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.