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

Last update: Sep 9, 2024

Our stock screener has spotted INTERPUBLIC GROUP OF COS INC (NYSE:IPG) as a good dividend stock with solid fundamentals. NYSE:IPG shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Insights: 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:

With a Yearly Dividend Yield of 4.20%, IPG is a good candidate for dividend investing.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.36. IPG pays more dividend than 90.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.26, IPG pays a better dividend.
The dividend of IPG is nicely growing with an annual growth rate of 8.30%!
IPG has been paying a dividend for at least 10 years, so it has a reliable track record.
IPG has not decreased their dividend for at least 10 years, which is a reliable track record.

Understanding NYSE:IPG's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:IPG has achieved a 5 out of 10:

IPG has a Altman-Z score of 1.86. This is in the better half of the industry: IPG outperforms 71.74% 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 82.61% of the companies in the same industry.

Evaluating Profitability: 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 9 for profitability:

With an excellent Return On Assets value of 6.07%, IPG belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
IPG has a better Return On Equity (26.90%) than 92.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.12%, IPG belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is significantly above the industry average of 7.06%.
The 3 year average ROIC (12.64%) for IPG is below the current ROIC(13.12%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 9.46%, IPG belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
IPG's Profit Margin has improved in the last couple of years.
IPG has a Operating Margin of 13.63%. This is in the better half of the industry: IPG outperforms 77.17% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
In the last couple of years the Gross Margin of IPG has grown nicely.

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

For an up to date full fundamental analysis you can check the fundamental report of IPG

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.