Is NYSE:UPS suited for dividend investing?

Last update: Sep 25, 2023

UNITED PARCEL SERVICE-CL B (NYSE:UPS) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:UPS scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Dividend Insights: NYSE:UPS

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:UPS has been assigned a 8 for dividend:

With a Yearly Dividend Yield of 4.17%, UPS is a good candidate for dividend investing.
UPS's Dividend Yield is rather good when compared to the industry average which is at 2.18. UPS pays more dividend than 100.00% of the companies in the same industry.
UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.64.
On average, the dividend of UPS grows each year by 13.02%, which is quite nice.
UPS has paid a dividend for at least 10 years, which is a reliable track record.
UPS has not decreased their dividend for at least 10 years, which is a reliable track record.

Deciphering NYSE:UPS'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:UPS has received a 6 out of 10:

UPS has an Altman-Z score of 3.75. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
UPS has a debt to FCF ratio of 3.35. This is a good value and a sign of high solvency as UPS would need 3.35 years to pay back of all of its debts.
The Debt to FCF ratio of UPS (3.35) is better than 62.50% of its industry peers.
Looking at the Current ratio, with a value of 1.32, UPS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
UPS's Quick ratio of 1.32 is fine compared to the rest of the industry. UPS outperforms 75.00% of its industry peers.

What does the Profitability looks like for NYSE:UPS

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:UPS, the assigned 9 is noteworthy for profitability:

The Return On Assets of UPS (14.23%) is better than 93.75% of its industry peers.
With an excellent Return On Equity value of 50.02%, UPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
UPS has a better Return On Invested Capital (16.25%) than 87.50% of its industry peers.
UPS had an Average Return On Invested Capital over the past 3 years of 17.65%. This is significantly above the industry average of 11.59%.
Looking at the Profit Margin, with a value of 10.41%, UPS belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
UPS's Profit Margin has improved in the last couple of years.
UPS has a Operating Margin of 12.09%. This is amongst the best in the industry. UPS outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of UPS has grown nicely.
Looking at the Gross Margin, with a value of 78.32%, UPS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.