Analyzing NYSE:UPS's Dividend Potential.

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 assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:UPS has been awarded a 8 for its dividend quality:

• UPS has a Yearly Dividend Yield of 4.22%, which is a nice return.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.20. 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 2.76.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Assessment of 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 4.00 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.
• UPS has a better Current ratio (1.32) than 62.50% of its industry peers.
• 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.

Assessing Profitability for NYSE:UPS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:UPS was assigned a score of 9 for profitability:

• UPS's Return On Assets of 14.23% is amongst the best of the industry. UPS outperforms 93.75% of its industry peers.
• UPS has a better Return On Equity (50.02%) than 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 16.25%, UPS belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• 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%.
• The Profit Margin of UPS (10.41%) is better than 93.75% of its industry peers.
• In the last couple of years the Profit Margin of UPS has grown nicely.
• UPS's Operating Margin of 12.09% is amongst the best of the industry. UPS outperforms 87.50% of its industry peers.
• UPS's Operating Margin has improved in the last couple of years.
• UPS has a Gross Margin of 78.32%. This is amongst the best in the industry. UPS outperforms 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

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.