Exploring NYSE:UPS's dividend characteristics.

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.

A Closer Look at Dividend for NYSE:UPS

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:UPS was assigned a score of 8 for dividend:

• UPS has a Yearly Dividend Yield of 4.17%, which is a nice return.
• Compared to an average industry Dividend Yield of 2.17, UPS pays a better dividend. On top of this UPS pays more dividend than 100.00% of the companies listed in the same industry.
• UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.68.
• 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.

Deciphering NYSE:UPS's Health Rating

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 4.01 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.
• The Current ratio of UPS (1.32) is better than 62.50% of its industry peers.
• 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.

Assessing Profitability for NYSE:UPS

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's Return On Assets of 14.23% is amongst the best of the industry. UPS outperforms 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.
• The Return On Invested Capital of UPS (16.25%) is better 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.
• UPS has a better Gross Margin (78.32%) than 100.00% of its industry peers.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.