TELTE Connectivity plcStock — Technology
Yield
1.41%
Indicated $3.12 ÷ $221.24 close, Oct 28, 2026.
Payout ratio
25.1%
FY2025 dividends paid $803m ÷ free cash flow $3,203m (operating cash flow $4,139m less capital expenditures $936m).
Dividend
$0.78
Declared March 11, 2026, up 10% from $0.71, payable June 12, 2026.
Leverage
1.1x
Net debt $4,439m (debt $5,694m less cash $1,255m) ÷ EBITDA $4,049m (operating income $3,211m plus depreciation $838m), FY2025 10-K.
House verdict
Covered four times over and raised every year. TE Connectivity paid $803 million against $3,203 million of free cash flow in fiscal 2025, net debt is 1.1 times EBITDA, and the quarterly rate has risen every year in the series shown to $0.78. The yield clears the 1% line and every check passes, so the card is graded good.
Key risk: Auto and industrial end markets: a production downturn cuts volumes, though the payout starts from 25% of free cash flow.
Changes if: Free cash flow payout rises above 60%, or net debt/EBITDA crosses 3x.
- ✓Cash-flow cover 25.1% of FY2025 free cash flow, pass (<60%).
- ✓Leverage About 1.1x on reconstructed EBITDA, pass (<3x).
- ✓Dividend history Quarterly rate $0.16 in 2010 to $0.71 in 2025, $0.78 in 2026; raised every year in the series shown. No cut.
- ✓Trap screen Yield 1.41%, no cut, payout under 60%; not a trap pattern.
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.