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Should You Be Holding Tate & Lyle plc (LON:TATE)?

Simply Wall St

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Tate & Lyle plc (LON:TATE) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TATE, it is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Tate & Lyle here.

Excellent balance sheet established dividend payer

TATE's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. TATE appears to have made good use of debt, producing operating cash levels of 0.48x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:TATE Historical Debt, May 20th 2019

Income investors would also be happy to know that TATE is a great dividend company, with a current yield standing at 3.6%. TATE has also been regularly increasing its dividend payments to shareholders over the past decade.

LSE:TATE Historical Dividend Yield, May 20th 2019

Next Steps:

For Tate & Lyle, I've put together three fundamental aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for TATE’s future growth? Take a look at our free research report of analyst consensus for TATE’s outlook.
  2. Historical Performance: What has TATE's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TATE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.