Updated April 2025
TE Connectivity isn’t the type of company making daily headlines, but it’s deeply embedded in the fabric of modern life. From the sensors in electric vehicles to the connectors behind data networks and industrial equipment, TEL helps keep the modern world running. It’s a critical player in sectors that aren’t just growing—they’re evolving. And while it may not carry the flash of some tech giants, it brings something else to the table: consistency.
Headquartered in Switzerland and with a global footprint, TE Connectivity has become a dependable force in the industrial tech landscape. It’s a company that thrives on innovation, but it does so quietly. That low-profile approach doesn’t mean low impact, though. For investors who care more about cash flow than catchy headlines, TEL can offer something meaningful.
This isn’t about explosive growth or hype-fueled runs. It’s about reliable operations, steady margins, and a management team that respects capital discipline. That’s exactly the kind of foundation long-term dividend investors like to see.
Recent Events
Looking at the most recent quarter, TE Connectivity showed flat revenue growth—just 0.1% year over year. Not thrilling, but considering the broader economic backdrop, it’s a sign of stability. The more jarring figure was a sharp decline in earnings, down over 70% compared to the same period last year. That drop isn’t insignificant, but it’s largely tied to pressure in its Communications segment, which is more sensitive to cyclical swings.
Transportation and Industrial segments held up better, cushioning the impact. And despite the earnings dip, the company still posted strong cash flow numbers. Operating cash flow came in at $3.64 billion over the trailing twelve months, and levered free cash flow hit $2.19 billion. That kind of cash strength is what keeps the dividend not just intact, but growing.
Shares have drifted lower lately, sitting around $140—down from a 52-week high near $160. That pullback, while modest, means a slightly more attractive yield for dividend-focused investors keeping an eye on income streams.
Key Dividend Metrics 📊
💵 Forward Dividend Yield: 2.02%
🔄 5-Year Average Dividend Yield: 1.68%
📈 5-Year Dividend Growth Rate: ~9% (implied)
💰 Payout Ratio: 40.13%
💼 Free Cash Flow Payout Ratio: Approx. 38%
💣 Dividend Safety Score: Strong and sustainable
📅 Next Ex-Dividend Date: May 21, 2025
💸 Next Payment Date: June 10, 2025
These numbers tell you a lot about the character of TEL as a dividend stock. The yield may not scream for attention, but it’s higher than the company’s own average—and comfortably covered by earnings and cash flow.
Dividend Overview
TE Connectivity’s dividend isn’t something it shouts from the rooftops, but it’s a key piece of its identity. At a forward annual payout of $2.84 per share, the dividend represents a quiet commitment to shareholders that’s been growing steadily over the years.
The 2.02% forward yield sits a bit above TEL’s five-year average, giving current investors a slightly better-than-usual entry point. But it’s the payout structure that makes it appealing—not the raw number. With a conservative 40% payout ratio, the dividend isn’t stretched. There’s plenty of room to keep this stream of income flowing even during leaner years.
TEL generates cash from real operations. It isn’t leaning on debt to fund payouts. And with over $1.2 billion in cash and a manageable debt load, the company has the flexibility to keep rewarding shareholders while still investing in future growth.
Dividend Growth and Safety
When it comes to dividend growth, TEL doesn’t chase headlines—it sticks to a steady climb. Over the past five years, its dividend has grown at a compound rate close to 9%. That’s well above inflation and signals a commitment that extends beyond just maintaining the status quo.
The company’s management seems to treat dividend growth as a long-term responsibility, not a marketing tool. With earnings coverage healthy and cash flow backing it up, TEL has the breathing room to continue raising the dividend without compromising financial stability.
The balance sheet also adds to the sense of safety. A debt-to-equity ratio of 33.6% isn’t alarming, and the current ratio of 1.68 means TEL has enough liquidity to manage near-term obligations. These aren’t glamorous figures, but they’re exactly the kind of stats that dividend investors look for when gauging payout sustainability.
Free cash flow is the real story here. While tighter than net income coverage, it’s still strong. With $2.19 billion in levered free cash flow and annual dividend obligations around $847 million, there’s a healthy buffer. It’s enough to continue returns to shareholders and leave something on the table for reinvestment.
The dividend doesn’t rely on hope—it’s backed by the kind of recurring cash that comes from building essential components for global industries. That’s not just comforting; it’s strategic.
TE Connectivity might not be the first stock people think of when talking dividends, but its consistent approach, cash generation, and shareholder-focused mindset make it a name worth paying attention to for investors who care about growing income over time.
Chart Analysis
The chart for TE Connectivity over the past year tells a story of a stock that’s been trying to find direction in a broader sideways-to-down environment. While there have been moments of strength, particularly between June and September, the price has generally struggled to break above the mid-$150s level with any conviction.
Moving Averages
One of the first things that stands out is the recent crossover between the 50-day moving average (red) and the 200-day moving average (blue). The 50-day average has now dipped below the 200-day—what’s often referred to as a bearish crossover. It doesn’t always spell long-term trouble, but it does suggest that short-term momentum has cooled relative to the longer-term trend.
For much of the year, the 50-day average stayed above the 200-day, supporting the mid-year rallies. But since late February, prices have slipped below both moving averages and remained there, showing a lack of sustained buying interest recently.
Volume Activity
Volume hasn’t shown any major spikes outside of a few isolated bursts, notably during drawdowns in May, December, and most recently in late March. None of these spikes had a lasting bullish follow-through, which could mean institutional buyers are sitting on the sidelines for now.
There’s also no clear accumulation volume pattern at play. When prices bounced in the past, volume often didn’t follow through strongly. That can sometimes signal short-term technical bounces rather than deeper conviction from longer-term holders.
RSI Behavior
Looking at the relative strength index (RSI) on the bottom panel, the stock has avoided extreme overbought or oversold levels for most of the year. It came close to overbought (above 70) during mid-July and again briefly in January. More recently, though, RSI is hovering in neutral territory, just under 60.
That puts the stock in a middle zone—not stretched, but not signaling bargain levels either. The RSI readings in the low-to-mid range support the idea that momentum is cooling, but not completely exhausted. It’s more of a waiting game at this stage, with buyers and sellers evenly matched.
Price Trends
The price itself has been oscillating between roughly $137 on the low end and $158 on the high end for most of the year. That wide range reflects a market trying to assess value and growth potential amid shifting macro factors.
What’s noticeable is the series of lower highs since January. The stock has been attempting to rally, but each push upward has been weaker than the last. That’s often a sign of waning momentum and growing hesitation from buyers.
The most recent price action, showing a swift pullback from the $150 area down to near-yearly lows, also reinforces that caution. There’s a test of the lower boundary happening now, and the next few weeks may help confirm whether that $137 support zone holds or gives way.
Candle Action
Looking at the last five candles in particular, there’s a clear increase in downside pressure. Several candles have long upper wicks, indicating that buyers tried to push prices higher intraday but were met with selling pressure. This pattern tends to reflect exhaustion among bulls and growing strength on the sell side.
The final candle shows a sharp drop, closing near the session low. That kind of action, particularly when it follows a few indecisive or weak candles, often points to bearish follow-through in the near term unless a reversal pattern appears soon.
Balance Sheet Analysis
TE Connectivity’s balance sheet over the past few years shows the kind of steady hand you’d expect from a company that makes the electrical nervous system of modern industry. Total assets have climbed from $20.7 billion in 2022 to nearly $22.9 billion in the current trailing twelve months, suggesting consistent reinvestment and incremental growth. Equity has followed suit, rising by roughly $1.5 billion over the same period, a good sign that the company isn’t just expanding through debt but through real retained earnings and capital discipline.
Liabilities have remained fairly flat—no surprise borrowing sprees or financial high-wire acts here. Total debt has hovered just above $4.3 billion, showing minimal change year-over-year. Net debt has even ticked down slightly, showing they’re managing obligations smartly while maintaining flexibility. Net tangible assets have also increased to $5.4 billion, up from $4.3 billion two years ago—an encouraging move that means there’s more behind the curtain than just goodwill and intangibles. Working capital is solid at nearly $2.9 billion, giving the company breathing room for day-to-day operations. It’s a well-balanced sheet, no pun intended, and aside from the shrinking share count thanks to buybacks (a nice little shareholder-friendly touch), there’s little drama here—unless, of course, you count treasury shares making their own quiet comeback.
Cash Flow Statement
TE Connectivity continues to show strength in its ability to generate cash from operations. Over the trailing twelve months, operating cash flow reached $3.64 billion, up from $3.13 billion just two years prior. This steady growth reflects a business that’s not only maintaining profitability but also converting earnings into real cash—consistently and efficiently. Free cash flow is similarly impressive, landing at just over $2.9 billion, giving the company plenty of room to cover dividends, reinvest in the business, and still have capital left to return to shareholders.
On the flip side, financing cash flow tells a familiar story for a mature, shareholder-focused business. With nearly $1.9 billion spent on share repurchases and another $351 million used to pay down debt, TEL is clearly prioritizing capital returns. Investing cash flow was negative, as expected, with around $734 million going toward capital expenditures—nothing alarming, just ongoing investment in infrastructure and operations. Despite all this activity, the company ends the period with $1.27 billion in cash, showing solid liquidity and responsible management. It’s a cash flow profile that’s not flashy, but certainly reassuring.
Analyst Ratings
📈 TE Connectivity (TEL) has recently seen a wave of analyst activity that reflects a mix of caution and optimism. The average price target from 22 analysts currently stands at around $174.76, suggesting a meaningful upside from its recent trading levels near $140.70.
🔁 In January 2025, there were a few notable shifts in sentiment:
🟡 HSBC moved its rating from “reduce” to “hold” and set a new price target of $166. This change hints at a more balanced view on the stock, likely influenced by steady performance and stabilization in key markets.
🟢 Bank of America reaffirmed its “buy” rating and raised its price target from $167 to $170. The upward revision shows increased confidence in TEL’s long-term outlook, possibly due to resilient free cash flow and a solid balance sheet.
🟠 Truist Financial took a more cautious stance, lowering its price target slightly from $165 to $163 while maintaining a “hold” rating. This suggests some hesitation, likely tied to short-term headwinds or macroeconomic uncertainty.
🧭 The spread in opinions underscores the complexity of TEL’s positioning. While not everyone is rushing to upgrade, there’s a clear undercurrent of respect for its stability and financial discipline. Investors paying attention to these signals may find it valuable to track how sentiment evolves in the coming months.
Earning Report Summary
Solid Sales and Earnings
TE Connectivity kicked off its fiscal 2025 with a quarter that, while not flashy, quietly showed strength where it counts. Revenue came in at $3.84 billion, which was right in line with the same period last year. It wasn’t a breakout quarter for sales growth, but considering the current macro environment, holding steady is no small feat.
Earnings per share, however, told a more encouraging story. Adjusted EPS climbed to $1.95, which is a 6% increase from the year before. That kind of growth doesn’t happen without solid execution behind the scenes. The company also posted a record adjusted operating margin of 19.4%, thanks to tight cost controls and efficient operations. They didn’t need a revenue spike to grow earnings—they squeezed more profit out of every dollar coming in.
Strong Orders and a Nod to AI
New orders rolled in at a healthy $4.0 billion, up 6% year-over-year. The industrial side of the business played a big part in that, especially with more projects popping up around artificial intelligence. The company seems to be leaning into that space in a thoughtful way, aligning its product offerings with where the puck is going rather than where it’s been.
It’s not just about chasing the latest trend either. Their order book tells you customers are still putting real money into long-term infrastructure, and TE is right in the thick of it.
Cash Flow That Keeps Things Moving
This quarter also brought in some of the strongest cash flow figures the company’s seen in a while. Operating cash flow came in at $878 million, up 22% from last year, and free cash flow wasn’t far behind at $674 million, up 18%. That kind of performance gives them the flexibility to keep investing in growth, return money to shareholders, and still keep the balance sheet looking healthy.
CEO Terrence Curtin mentioned expecting sales to climb a bit in the next quarter, and that EPS should come in higher than both last year and this past quarter. There’s a sense of cautious confidence in the air—grounded, but optimistic. And that tends to be a good combination when it comes to consistency and long-term value.
Management Team
At the helm of TE Connectivity is Chief Executive Officer Terrence R. Curtin, who also serves on the board. Curtin has played a pivotal role in guiding the company through both innovation and disciplined execution. He’s known for keeping the company grounded in its core strengths while still pushing for expansion into high-growth sectors.
Supporting him is a seasoned executive lineup. Vish Ananthan, President of the Automation and Connected Living sector, and Claudia Anderson, the Chief Human Resources Officer, each bring focused leadership in their respective areas. The team also includes key technology leaders like Davy Brown and Erin Byrne, who are driving engineering and R&D efforts across industrial applications. Together, this group maintains the company’s focus on long-term growth while keeping operations efficient and adaptive to change.
Valuation and Stock Performance
As of early April 2025, TE Connectivity’s stock was trading around $140.70. Over the past year, the stock has hovered between a high of $159.98 and a low of $137.61. It’s been a fairly steady performer, moving in step with broader market conditions and sector-specific news.
The company holds a market cap in the ballpark of $44 billion. Its trailing price-to-earnings ratio sits at 22.23, while its forward P/E of 17.45 reflects expectations for earnings growth in the coming quarters. The price-to-book ratio of 3.38 shows the market’s valuation of its underlying assets, and the company’s consistent cash generation gives weight to that confidence.
On the income side, TE offers a forward dividend yield of 2.02%, which is comfortably supported by a payout ratio of just over 40%. That combination of capital return and retained earnings for reinvestment helps paint a picture of a well-balanced strategy.
Risks and Considerations
Like any global business, TE Connectivity isn’t without its risks. The company operates across many regions, so it has to navigate everything from shifting trade policies to local regulatory demands. The electronic components market is also highly competitive, requiring constant innovation and efficiency just to maintain positioning.
Environmental regulations, especially in Europe and Asia, add another layer of complexity to compliance and manufacturing operations. Legal risks also pop up from time to time. Patent disputes or intellectual property challenges can lead to costs and distractions, even if they don’t always make headlines.
There’s also the ever-present risk tied to global supply chains. Disruptions—whether from natural disasters, geopolitical tension, or plain old logistics challenges—can ripple through TE’s operations. That said, the company has shown it can adapt, but these factors are still worth keeping in mind.
Final Thoughts
TE Connectivity checks a lot of boxes for investors who appreciate consistent execution, a reasonable yield, and strategic exposure to emerging tech trends. The management team is clearly experienced, and their ability to balance capital returns with long-term investment continues to stand out.
Valuation-wise, the stock offers a modest premium, but that seems fair given the company’s steady track record and growth outlook. It isn’t chasing market fads—it’s quietly building the infrastructure that helps everything else work. And for those watching with a long-term lens, that slow-and-steady strategy might be just the pace they’re looking for.