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

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 Analysis 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 4.19%, which is a nice return.
• IPG's Dividend Yield is rather good when compared to the industry average which is at 4.22. IPG pays more dividend than 88.76% of the companies in the same industry.
• IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.20.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Insights: NYSE:IPG

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:IPG has earned a 5 out of 10:

• The Altman-Z score of IPG (1.86) is better than 69.66% 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.
• IPG has a better Debt to FCF ratio (3.16) than 82.02% of its industry peers.

What does the Profitability looks like for NYSE:IPG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:IPG, the assigned 8 is noteworthy for profitability:

• IPG has a better Return On Assets (6.07%) than 85.39% of its industry peers.
• The Return On Equity of IPG (26.90%) is better than 92.13% of its industry peers.
• IPG has a Return On Invested Capital of 13.12%. This is amongst the best in the industry. IPG outperforms 92.13% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for IPG is significantly above the industry average of 7.21%.
• 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 in the better half of the industry: IPG outperforms 79.78% of its industry peers.
• IPG's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 13.63%, IPG is doing good in the industry, outperforming 76.40% 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.

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

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.