Analyzing NYSE:IPG's Dividend Potential.

INTERPUBLIC GROUP OF COS INC (NYSE:IPG) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:IPG scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for NYSE:IPG

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:IPG scores a 8 out of 10:

• IPG has a Yearly Dividend Yield of 4.26%, which is a nice return.
• IPG's Dividend Yield is rather good when compared to the industry average which is at 4.39. IPG pays more dividend than 90.11% of the companies in the same industry.
• IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
• On average, the dividend of IPG grows each year by 8.30%, which is quite nice.
• IPG has paid a dividend for at least 10 years, which is a reliable track record.
• IPG has not decreased their dividend for at least 10 years, which is a reliable track record.

Assessing Health for NYSE:IPG

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:IPG, the assigned 5 reflects its health status:

• IPG's Altman-Z score of 1.86 is fine compared to the rest of the industry. IPG outperforms 71.43% of its industry peers.
• The Debt to FCF ratio of IPG is 3.16, which is a good value as it means it would take IPG, 3.16 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 3.16, IPG belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.

How do we evaluate the Profitability for NYSE:IPG?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:IPG has earned a 8 out of 10:

• The Return On Assets of IPG (6.07%) is better than 84.62% of its industry peers.
• Looking at the Return On Equity, with a value of 26.90%, IPG belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
• IPG's Return On Invested Capital of 13.12% is amongst the best of the industry. IPG outperforms 91.21% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 7.41%.
• The last Return On Invested Capital (13.12%) for IPG is above the 3 year average (12.64%), which is a sign of increasing profitability.
• The Profit Margin of IPG (9.46%) is better than 73.63% of its industry peers.
• In the last couple of years the Profit Margin of IPG has grown nicely.
• The Operating Margin of IPG (13.63%) is better than 76.92% of its industry peers.
• IPG's Operating Margin has improved in the last couple of years.
• IPG's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.