Why NYSE:IPG qualifies as a good dividend investing stock.

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.

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:

• With a Yearly Dividend Yield of 4.60%, IPG is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 4.38, IPG pays a better dividend. On top of this IPG pays more dividend than 88.51% 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 2.28.
• 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.

Deciphering NYSE:IPG's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:IPG has received a 5 out of 10:

• With a decent Altman-Z score value of 1.80, IPG is doing good in the industry, outperforming 70.11% of the companies in the same industry.
• IPG has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as IPG would need 3.19 years to pay back of all of its debts.
• IPG has a Debt to FCF ratio of 3.19. This is amongst the best in the industry. IPG outperforms 85.06% of its industry peers.

Profitability Assessment of NYSE:IPG

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 8 out of 10:

• Looking at the Return On Assets, with a value of 4.73%, IPG is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 21.69%, IPG belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
• IPG has a better Return On Invested Capital (13.18%) than 94.25% 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 6.94%.
• 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.
• With a decent Profit Margin value of 7.44%, IPG is doing good in the industry, outperforming 74.71% of the companies in the same industry.
• IPG's Profit Margin has improved in the last couple of years.
• IPG has a better Operating Margin (13.60%) than 75.86% of its industry peers.
• 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.

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

Our latest full fundamental report of IPG contains the most current fundamental analsysis.

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.