Balancing Dividends and Fundamentals: The Case of NYSE:IPG.

Our stock screener has singled out INTERPUBLIC GROUP OF COS INC (NYSE:IPG) as a promising choice for dividend investors. NYSE:IPG not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Analysis for NYSE:IPG

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:IPG has been awarded a 8 for its dividend quality:

• IPG has a Yearly Dividend Yield of 4.25%, which is a nice return.
• IPG's Dividend Yield is rather good when compared to the industry average which is at 4.30. IPG pays more dividend than 90.32% of the companies in the same industry.
• IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
• 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.

Exploring NYSE:IPG's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:IPG was assigned a score of 5 for health:

• With a decent Altman-Z score value of 1.86, IPG is doing good in the industry, outperforming 70.97% of the companies in the same industry.
• IPG has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as IPG would need 3.16 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.16, IPG belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.

Looking at the Profitability

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 9 out of 10:

• With an excellent Return On Assets value of 6.07%, IPG belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
• With an excellent Return On Equity value of 26.90%, IPG belongs to the best of the industry, outperforming 92.47% 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 91.40% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 7.12%.
• 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.
• IPG has a Profit Margin of 9.46%. This is amongst the best in the industry. IPG outperforms 80.65% of its industry peers.
• In the last couple of years the Profit Margin of IPG has grown nicely.
• With a decent Operating Margin value of 13.63%, IPG is doing good in the industry, outperforming 78.49% of the companies in the same industry.
• 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.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of IPG for a complete fundamental analysis.

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.