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

Unearth the potential of UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a dividend stock recommended by our stock screening tool. NYSE:UPS maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Examination 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.
• 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.
• UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.68.
• 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.

Understanding NYSE:UPS's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:UPS scores a 6 out of 10:

• An Altman-Z score of 3.99 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.
• With a decent Debt to FCF ratio value of 3.35, UPS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
• UPS's Current ratio of 1.32 is fine compared to the rest of the industry. UPS outperforms 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.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:UPS, the assigned 9 is a significant indicator of 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.
• 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%.
• UPS's Profit Margin of 10.41% is amongst the best of the industry. UPS outperforms 93.75% of its industry peers.
• UPS's Profit Margin has improved in the last couple of years.
• 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.
• 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.

Disclaimer

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.