Why NYSE:IPG is a Top Pick for Dividend Investors.

Last update: May 3, 2024

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.

Understanding NYSE:IPG's Dividend Score

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:IPG was assigned a score of 8 for dividend:

IPG has a Yearly Dividend Yield of 4.33%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.32. IPG pays more dividend than 91.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, IPG pays a better dividend.
The dividend of IPG is nicely growing with an annual growth rate of 8.30%!
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.

Looking at the Health

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 (1.80) than 67.37% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 4.18, IPG belongs to the top of the industry, outperforming 82.11% of the companies in the same industry.

Profitability Insights: NYSE:IPG

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:

The Return On Assets of IPG (6.26%) is better than 89.47% of its industry peers.
With an excellent Return On Equity value of 28.32%, IPG belongs to the best of the industry, outperforming 92.63% of the companies in the same industry.
IPG has a better Return On Invested Capital (12.94%) than 90.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IPG is above the industry average of 7.68%.
The last Return On Invested Capital (12.94%) for IPG is above the 3 year average (12.64%), which is a sign of increasing profitability.
IPG's Profit Margin of 9.97% is amongst the best of the industry. IPG outperforms 85.26% of its industry peers.
IPG's Profit Margin has improved in the last couple of years.
IPG's Operating Margin of 13.60% is fine compared to the rest of the industry. IPG outperforms 77.89% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of IPG contains the most current fundamental analsysis.

Keep in mind

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.