Is INTERPUBLIC GROUP OF COS INC (NYSE:IPG) suited for dividend investing?

Take a closer look at INTERPUBLIC GROUP OF COS INC (NYSE:IPG), a stock of interest to dividend investors uncovered by our stock screener. IPG excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend for 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. IPG has received a 8 out of 10:

• IPG has a Yearly Dividend Yield of 5.06%, which is a nice return.
• Compared to an average industry Dividend Yield of 4.30, IPG pays a better dividend. On top of this IPG pays more dividend than 91.21% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.39, IPG pays a better dividend.
• The dividend of IPG is nicely growing with an annual growth rate of 7.02%!
• 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.

Health Assessment of IPG

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For IPG, the assigned 5 for health provides valuable insights:

• IPG has a Altman-Z score of 1.64. This is in the better half of the industry: IPG outperforms 67.03% of its industry peers.
• The Debt to FCF ratio of IPG is 3.24, which is a good value as it means it would take IPG, 3.24 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of IPG (3.24) is better than 81.32% of its industry peers.

Exploring IPG's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For IPG, the assigned 8 is a significant indicator of profitability:

• IPG has a Return On Assets of 3.76%. This is in the better half of the industry: IPG outperforms 78.02% of its industry peers.
• With an excellent Return On Equity value of 18.16%, IPG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 12.25%, IPG belongs to the top of the industry, outperforming 93.41% of the companies in the same industry.
• IPG had an Average Return On Invested Capital over the past 3 years of 12.24%. This is significantly above the industry average of 6.89%.
• The last Return On Invested Capital (12.25%) for IPG is above the 3 year average (12.24%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 6.45%, IPG is doing good in the industry, outperforming 76.92% of the companies in the same industry.
• With a decent Operating Margin value of 13.38%, IPG is doing good in the industry, outperforming 72.53% of the companies in the same industry.
• 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.

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

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

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.