Is NYSE:UPS suited for dividend investing?

UNITED PARCEL SERVICE-CL B (NYSE:UPS) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:UPS scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend for 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 2.17. 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.
• The dividend of UPS is nicely growing with an annual growth rate of 13.02%!
• UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
• UPS has not decreased their dividend for at least 10 years, which is a reliable track record.

How do we evaluate the Health for 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 3.99 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.
• UPS has a better Debt to FCF ratio (3.35) than 62.50% of its industry peers.
• Looking at the Current ratio, with a value of 1.32, UPS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
• 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.

Analyzing Profitability Metrics

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:

• UPS has a better Return On Assets (14.23%) 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.
• The Average Return On Invested Capital over the past 3 years for UPS 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.
• With an excellent Operating Margin value of 12.09%, UPS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
• 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.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.