TE CONNECTIVITY (TEL) DIvidends Date & History

Key Takeaways

• TEL pays a quarterly dividend of $0.78 per share, or $3.12 annualized, translating to a dividend yield of roughly 1.4%.
• The company has raised its dividend for more than 12 consecutive years, with a five-year dividend growth rate near 7.7% annually.
• A payout ratio of about 30% of earnings and roughly 26% of free cash flow signals a highly sustainable and well-covered dividend.
• The yield is modest but sits above the typical level for electronic components peers, making it better suited to dividend growth investors than to high-yield income seekers.

Dividend Overview

TE Connectivity plc (TEL) is a global technology company that designs and manufactures connectors, sensors, and other electronic components used across the automotive, industrial, communications, and data center markets. The company maintains a quarterly dividend schedule, most recently paying $0.78 per share, with a current dividend yield of approximately 1.4%.

TE Connectivity is best characterized as a dividend growth stock rather than a high-yield stock. Its yield is deliberately modest, reflecting a strategy that emphasizes steady, compounding increases over time rather than a large upfront income payment. The most recent increase, announced in March 2026, raised the quarterly payout from $0.71 to $0.78 per share — a nearly 10% boost. With its next ex-dividend date expected on November 20, 2026, and payment scheduled for December 11, 2026, the company continues to demonstrate a reliable, disciplined approach to returning capital to shareholders.

Dividend History and Growth

TE Connectivity has a long and consistent track record of returning cash to shareholders, with dividend payments dating back to 2007. More importantly, the company has increased its dividend for more than 12 consecutive years, a streak that places it among a relatively select group of consistent dividend growers in the technology and industrial sectors.

Over the past five years, the dividend has grown at an average annual rate of roughly 7.7%, and the 10-year growth rate is similarly solid at around 7.5%. Recent increases have been particularly notable, including the jump from $0.71 to $0.78 per share in early 2026. This combination of longevity and above-inflation growth reflects management's confidence in the business and a clear commitment to making dividend increases a recurring priority.

Dividend Sustainability and Payout Ratio

The sustainability of TE Connectivity's dividend is one of its strongest attributes. The company's payout ratio — the portion of earnings paid out as dividends — stands at approximately 30% based on trailing earnings. This is a conservative level that leaves ample room to absorb earnings fluctuations while continuing to fund the dividend.

Coverage by free cash flow (FCF), the cash a company generates after capital expenditures, is even more comfortable at roughly 26%. This means the dividend is funded with only a small fraction of the company's available cash, providing a significant cushion against economic downturns. TE Connectivity also maintains a solid balance sheet, which further supports the dividend's reliability. The low payout ratio not only protects the current dividend but also provides the flexibility to sustain future increases.

Dividend Compared to Industry Peers

Within the electronic components and connectors industry, TE Connectivity's dividend profile compares favorably. Its roughly 1.4% yield is above the industry average, which typically sits below 1%, and exceeds peers such as Amphenol (APH), whose yield is generally lower. However, relative to the broader U.S. stock market, where many dividend-paying companies yield between 1.4% and 4%, TE Connectivity's payout is modest.

What distinguishes TE Connectivity from many peers is the durability of its dividend growth. While some industry competitors offer lower yields and less predictable increases, TE Connectivity has built a 12-year-plus streak of consecutive raises backed by conservative payout levels. For investors who value compounding growth over immediate income, this profile stands out within its sector.

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Is This Stock Attractive for Dividend Investors?

TE Connectivity is likely to appeal most to dividend growth investors and long-term, total-return-oriented investors rather than those seeking high current income. With a yield near 1.4%, it does not compete with traditional high-yield dividend payers, but its 12-year-plus streak of increases and roughly 7.7% five-year growth rate make it an attractive candidate for investors focused on a growing income stream over time.

Conservative investors may also appreciate the low payout ratio and strong free cash flow coverage, which reduce the risk of a dividend cut during economic downturns. For income-focused investors who require a larger immediate yield, however, the modest payout may be less compelling. Overall, the stock is best viewed as a quality dividend grower with a dependable record and room for continued increases, rather than a high-yield income vehicle.

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