TE CONNECTIVITY (TEL) DIvidends Date & History

Key Takeaways

• TE Connectivity plc (TEL) offers a trailing dividend yield of 1.18%, paid quarterly at $0.71 per share, with a recent increase to $0.78.
• The company has raised its dividend for 13 consecutive years, reflecting a commitment to shareholder returns.
• Payout ratio stands at 40.06%, indicating strong sustainability supported by earnings per share (EPS) of $6.94 and levered free cash flow (FCF) of $1.99 billion.
• Dividend yield exceeds key peers like Amphenol (APH) at 0.66% in the electronic components industry.
• Next ex-dividend date is May 22, 2026, with payment on June 12, 2026.

Dividend Overview

TE Connectivity plc (TEL), a leading provider of connectivity and sensor solutions in the electronic components industry, maintains a modest dividend profile suited for growth-oriented investors. The company currently offers a trailing twelve-month (TTM) dividend yield of 1.18% based on an annual dividend of $2.91 per share. Dividends are paid quarterly, with the most recent payout at $0.71 per share and a forward quarterly rate of $0.78 announced in March 2026. This positions TEL as a dividend growth stock rather than a high-yield play, emphasizing consistent increases over yield maximization in a capital-intensive technology sector.

Dividend History and Growth

TE Connectivity has a reliable history of quarterly dividend payments, with no reductions in recent decades. The quarterly dividend has grown steadily: from $0.50 in 2021, to $0.59 in 2023, $0.65 in 2024, $0.71 in 2025, and $0.78 in 2026—a 9-10% year-over-year increase in recent periods. This translates to a 9.4% one-year growth rate and approximately 7-9% compound annual growth rate (CAGR) over the past three to five years. The company boasts 13 consecutive years of dividend increases, underscoring its long-term strategy of rewarding shareholders amid expansion in automotive, industrial, and aerospace markets.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 40.06%—well below levels that might strain finances. Covering the annual dividend requires about 40% of TTM EPS of $6.94, leaving ample room for reinvestment. Levered FCF of $1.99 billion comfortably exceeds annual dividend obligations estimated at around $850 million, providing robust cash coverage. Debt-to-equity ratio of 45.69% is manageable, complemented by strong profitability: 11.41% profit margin, 20.90% operating margin (operating margin measures profitability from core operations), and 16.10% return on equity (ROE, a measure of profit generated from shareholders' equity). These metrics support ongoing dividend growth without compromising balance sheet health.

Dividend Compared to Industry Peers

In the electronic components sector, where growth often takes precedence over high yields, TE Connectivity's 1.18% yield stands out favorably. Peer Amphenol Corporation (APH) yields 0.66%, while others like Jabil (JBL) and Flex (FLEX) offer even lower or negligible dividends. This positions TEL above many industry averages, which hover below 1% for similar technology hardware firms focused on connectors and sensors. Its combination of yield and growth differentiates it from non-dividend payers in this competitive space.

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Is This Stock Attractive for Dividend Investors?

TE Connectivity plc (TEL) appeals to dividend growth investors seeking reliable increases in a technology-driven sector. Its 13-year streak of raises, low 40% payout ratio, and strong FCF coverage make it suitable for long-term holders prioritizing compounding returns over immediate high income. Conservative investors may appreciate the stability—no cuts in years—and coverage metrics that buffer against cyclical downturns in electronics demand. However, the modest 1.18% yield may not attract yield-chasers, as the sector's growth focus limits payouts compared to utilities or REITs. Balanced portfolios blending growth and income could benefit, given robust ROE and debt management, though exposure to automotive and industrial cycles warrants monitoring. Overall, it fits patient investors valuing sustainability and gradual appreciation.

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