Eaton Corporation plc

ETN
Industrials
$391.35
1.09%Overvalued

Eaton Corporation plc (ETN) is a Industrials company that currently yields 1.09% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $107.17 and the overvaluation threshold at $376.33. Eaton Corporation plc holds a quality score of 62/100 (Good), reflecting 5 consecutive years of dividend growth with a 41% payout ratio. The 5-year dividend CAGR stands at 12.9%.

ETN Dividend Yield History — Weiss Valuation

Underval. $107.17Overval. $376.33

Distance to undervalued

Entry price is stretched

Needs 72.6% downside to reach the Weiss buy zone

Undervaluation starts near $107.17, where the annual dividend would imply roughly 3.99% yield. That is 2.90% above today's yield.

Buy-zone price

$107.17

Target yield

3.99%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

5Y

Verify the dividend record before treating yield as durable.

Earnings payout

41%

Earnings coverage leaves room for noise.

Cash payout

65%

Free cash flow coverage supports the payment.

Dividend growth

12.9%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Eaton Corporation plc is trading near its historical overvaluation band.

Current yield 1.1% vs historical max 4.5% (25% of maximum).

5 years of uninterrupted dividends.

Conservative payout ratio of 41%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 62/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

ETN Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$123

Year 10 Income

$444

Yield on Cost

4.6%

Total Income

$2,505

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

ETN Dividend Quality Score

Quality Score

62/ 100

Good

Payout Ratio20/25
Dividend Streak12/25
Growth (CAGR 5Y)20/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$391.35
Annual Dividend$4.28
Current Yield1.09%
Yield — Max (10Y)4.46%
Yield — Min (10Y)1.21%
Undervalued Below$107.17
Overvalued Above$376.33
Payout Ratio41.29%
CAGR Dividend 5Y12.9%
CAGR Dividend 10Y6.6%
Years No Cut5y

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5
consecutive years of dividend growth