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

Last update: Jan 14, 2025

INTERPUBLIC GROUP OF COS INC (NYSE:IPG) has caught the attention of dividend investors as a stock worth considering. NYSE:IPG excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding NYSE:IPG's Dividend Score

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 4.79%, which is a nice return.
Compared to an average industry Dividend Yield of 4.36, IPG pays a better dividend. On top of this IPG pays more dividend than 88.37% of the companies listed in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
On average, the dividend of IPG grows each year by 8.30%, which is quite nice.
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.

How We Gauge Health 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:

Looking at the Altman-Z score, with a value of 1.77, IPG is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
The Debt to FCF ratio of IPG is 3.19, which is a good value as it means it would take IPG, 3.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, IPG belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.

Profitability Examination for 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 8 for profitability:

Looking at the Return On Assets, with a value of 4.73%, IPG is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
IPG has a better Return On Equity (21.69%) than 90.70% of its industry peers.
IPG has a better Return On Invested Capital (13.18%) than 94.19% of its industry peers.
IPG had an Average Return On Invested Capital over the past 3 years of 12.64%. This is significantly above the industry average of 6.90%.
The last Return On Invested Capital (13.18%) for IPG is above the 3 year average (12.64%), which is a sign of increasing profitability.
The Profit Margin of IPG (7.44%) is better than 74.42% of its industry peers.
IPG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.60%, IPG is in the better half of the industry, outperforming 75.58% of the companies in the same industry.
IPG's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of IPG has grown nicely.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.