Core Insights - TE Connectivity plc reported a strong fiscal first quarter for 2026, exceeding guidance with a 22% increase in sales and over 30% growth in earnings per share (EPS) year over year [1][2] - The company's growth was driven by investments in data and power connectivity, particularly in applications such as AI, energy grid hardening, and next-generation vehicles [2] - Record quarterly orders exceeded $5 billion, indicating a robust demand across both Industrial and Transportation segments [2] Financial Performance - Net sales reached $4.7 billion, a 22% increase year over year, with organic growth of 15% [5][12] - GAAP diluted EPS from continuing operations was $2.53, reflecting a 45% increase year over year, while adjusted EPS was $2.72, up 33% [5][12] - The GAAP operating margin improved to 20.6%, a rise of 260 basis points year over year, and the adjusted operating margin expanded to 22.2% [5][12] Second Quarter Outlook - For the second quarter of fiscal 2026, the company anticipates sales of approximately $4.7 billion, representing a 13% increase on a reported basis and 6% organically year over year [3] - Adjusted EPS is expected to be around $2.65, marking a 20% increase year over year, while GAAP EPS is projected at approximately $2.26 [3] Segment Performance - The Transportation Solutions segment generated net sales of $2.467 billion, while the Industrial Solutions segment reported $2.202 billion [16] - Operating income for Transportation Solutions was $501 million with a margin of 20.3%, and for Industrial Solutions, it was $462 million with a margin of 21.0% [16] Cash Flow and Shareholder Returns - Cash flow from operating activities was $865 million, with free cash flow amounting to $608 million [5][15] - The company returned $615 million to shareholders during the quarter [5]

Core Insights - Wall Street is experiencing a strong rally, driven by solid corporate earnings, resilient economic data, the AI boom, and retail investor enthusiasm, despite concerns over trade policy and Federal Reserve actions [1] Dividend Growth Strategy - Dividend investing is gaining traction as it provides consistent income, especially in uncertain markets, with a focus on stocks that have a strong history of year-over-year dividend growth leading to higher returns [2][4] - Stocks with a solid dividend growth history are typically mature companies, offering downside protection and acting as a hedge against market volatility [4][5] - Selected dividend growth stocks include Boyd Gaming Corporation, TE Connectivity, UGI Corporation, NetEase Inc., and Garmin Ltd., which show strong earnings revisions and growth potential [3][9] Stock Selection Criteria - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include 5-Year Historical Sales Growth and EPS Growth greater than zero, ensuring a strong record of revenue and earnings growth [7] - Valuation metrics such as Price/Cash Flow less than the industry average and a 52-Week Price Change greater than the S&P 500 are also important for stock selection [8] Company Profiles - **Boyd Gaming Corporation (BYD)**: A multi-jurisdictional gaming company with a positive earnings estimate revision of $0.31 and an earnings surprise of 9.12% over the past four quarters, holding a Zacks Rank 1 and a Growth Score of A [10][11] - **TE Connectivity (TEL)**: A global technology company with a solid earnings estimate revision of $0.22 and an estimated growth of 12.30%, also holding a Zacks Rank 1 and a Growth Score of B [11][12] - **UGI Corporation (UGI)**: A holding company for energy products with an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, holding a Zacks Rank 2 and a Growth Score of B [13] - **NetEase Inc. (NTES)**: An Internet technology company with a positive earnings estimate revision and an estimated earnings growth rate of 20.14%, holding a Zacks Rank 2 and a Growth Score of A [14] - **Garmin Ltd. (GRMN)**: An OEM of navigation equipment with a positive earnings estimate revision of $0.03 and an estimated earnings growth rate of 7.85%, holding a Zacks Rank 2 and a Growth Score of B [15]