Analyzing NYSE:UPS's Dividend Potential.

Last update: Sep 29, 2023

UNITED PARCEL SERVICE-CL B (NYSE:UPS) has caught the attention of dividend investors as a stock worth considering. NYSE:UPS excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

How We Gauge Dividend for NYSE:UPS

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. NYSE:UPS has received 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 2.18. 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 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.

Understanding NYSE:UPS's Health Score

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:

An Altman-Z score of 3.76 indicates that UPS is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of UPS is 3.35, which is a good value as it means it would take UPS, 3.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UPS (3.35) is better than 62.50% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.32, UPS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.

Understanding NYSE:UPS's Profitability

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:UPS has earned a 9 out of 10:

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

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

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.