Why the dividend investor may take a look at NYSE:IPG.

Last update: Oct 21, 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.

Evaluating Dividend: NYSE:IPG

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:IPG has received a 8 out of 10:

With a Yearly Dividend Yield of 4.12%, IPG is a good candidate for dividend investing.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.03. IPG pays more dividend than 89.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.18, IPG pays a better dividend.
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 Metrics for NYSE:IPG

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:

IPG has a Altman-Z score of 1.87. This is in the better half of the industry: IPG outperforms 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.
The Debt to FCF ratio of IPG (3.16) is better than 83.15% of its industry peers.

Assessing Profitability for NYSE:IPG

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:IPG scores a 9 out of 10:

IPG has a Return On Assets of 6.07%. This is amongst the best in the industry. IPG outperforms 85.39% 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 92.13% of the companies in the same industry.
IPG has a Return On Invested Capital of 13.12%. This is amongst the best in the industry. IPG outperforms 93.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 7.21%.
The 3 year average ROIC (12.64%) for IPG is below the current ROIC(13.12%), indicating increased profibility in the last year.
The Profit Margin of IPG (9.46%) is better than 80.90% of its industry peers.
In the last couple of years the Profit Margin of IPG has grown nicely.
IPG's Operating Margin of 13.63% is fine compared to the rest of the industry. IPG outperforms 76.40% 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.

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

Disclaimer

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.