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Exploring NYSE:UPS's dividend characteristics.

By Mill Chart

Last update: Sep 26, 2023

Consider UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a top pick for dividend investors, identified by our stock screening tool. NYSE:UPS shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Assessment of 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:

  • UPS has a Yearly Dividend Yield of 4.17%, which is a nice return.
  • 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.
  • Compared to an average S&P500 Dividend Yield of 2.64, UPS pays a better dividend.
  • On average, the dividend of UPS grows each year by 13.02%, which is quite nice.
  • UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
  • UPS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Evaluating Health: NYSE:UPS

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:UPS, the assigned 6 reflects its health status:

  • An Altman-Z score of 3.75 indicates that UPS is not in any danger for 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.
  • Looking at the Debt to FCF ratio, with a value of 3.35, UPS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
  • With a decent Current ratio value of 1.32, UPS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • UPS has a Quick ratio of 1.32. This is in the better half of the industry: UPS outperforms 75.00% of its industry peers.

Understanding NYSE:UPS's Profitability

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.
  • UPS's Return On Equity of 50.02% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.
  • UPS's Return On Invested Capital of 16.25% is amongst the best of the industry. UPS outperforms 87.50% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for UPS is significantly above the industry average of 11.59%.
  • UPS has a better Profit Margin (10.41%) than 93.75% of its industry peers.
  • In the last couple of years the Profit Margin of UPS has grown nicely.
  • UPS's Operating Margin of 12.09% is amongst the best of the industry. UPS outperforms 87.50% of its industry peers.
  • In the last couple of years the Operating Margin of UPS has grown nicely.
  • UPS's Gross Margin of 78.32% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.

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

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

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.

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