Why NYSE:UPS is a Top Pick for Dividend Investors.

Our stock screener has spotted UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a good dividend stock with solid fundamentals. NYSE:UPS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Evaluating Dividend: NYSE:UPS

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:UPS has achieved a 8 out of 10:

• 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 2.17. 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.
• The dividend of UPS is nicely growing with an annual growth rate of 13.02%!
• 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.

How We Gauge Health for NYSE:UPS

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 NYSE:UPS, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 3.74 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.
• UPS has a better Current ratio (1.32) than 62.50% of its industry peers.
• With a decent Quick ratio value of 1.32, UPS is doing good in the industry, outperforming 75.00% of the companies in the same industry.

Evaluating Profitability: NYSE:UPS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:UPS has achieved a 9:

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

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

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

Disclaimer

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.