Exploring NYSE:UPS's dividend characteristics.

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.

Dividend Assessment of 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:

• With a Yearly Dividend Yield of 4.22%, UPS is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 2.20, 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 2.76.
• 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.

Evaluating Health: NYSE:UPS

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:UPS was assigned a score of 6 for health:

• 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.
• UPS has a better Debt to FCF ratio (3.35) than 62.50% of its industry peers.
• UPS has a Current ratio of 1.32. This is in the better half 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.

Profitability Insights: NYSE:UPS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:UPS scores a 9 out of 10:

• 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.
• UPS has a better Return On Invested Capital (16.25%) than 87.50% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for UPS is significantly above the industry average of 11.59%.
• The Profit Margin of UPS (10.41%) is better than 93.75% of its industry peers.
• 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.
• In the last couple of years the Operating Margin of UPS has grown nicely.
• With an excellent Gross Margin value of 78.32%, UPS belongs to the best 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.

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.