Consider INTERPUBLIC GROUP OF COS INC (NYSE:IPG) as a top pick for dividend investors, identified by our stock screening tool. NYSE:IPG shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.
Deciphering NYSE:IPG's Dividend Rating
ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:IPG earns a 7 out of 10:
Compared to an average industry Dividend Yield of 3.70, IPG pays a better dividend. On top of this IPG pays more dividend than 89.47% of the companies listed in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.50.
On average, the dividend of IPG grows each year by 10.11%, which is quite nice.
IPG has paid a dividend for at least 10 years, which is a reliable track record.
IPG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
How do we evaluate the Health for NYSE:IPG?
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:IPG has received a 5 out of 10:
IPG has a better Altman-Z score (1.81) than 68.42% of its industry peers.
IPG has a Debt to FCF ratio of 4.32. This is amongst the best in the industry. IPG outperforms 81.05% of its industry peers.
Looking at the Profitability
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:IPG was assigned a score of 8 for profitability:
IPG has a better Return On Assets (5.48%) than 87.37% of its industry peers.
Looking at the Return On Equity, with a value of 25.34%, IPG belongs to the top of the industry, outperforming 91.58% of the companies in the same industry.
IPG has a better Return On Invested Capital (12.56%) than 92.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is above the industry average of 6.56%.
The 3 year average ROIC (11.42%) for IPG is below the current ROIC(12.56%), indicating increased profibility in the last year.
IPG has a better Profit Margin (8.59%) than 75.79% of its industry peers.
IPG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.10%, IPG is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
IPG's Operating Margin has improved in the last couple of years.
IPG's Gross Margin has improved in the last couple of years.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.