Is NYSE:UPS a Good Fit for Dividend Investing?

UNITED PARCEL SERVICE-CL B (NYSE:UPS) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:UPS demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

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 4.22%, which is a nice return.
• 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.
• Compared to an average S&P500 Dividend Yield of 2.76, UPS pays a better dividend.
• On average, the dividend of UPS grows each year by 13.02%, which is quite nice.
• 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.

Assessing Health Metrics 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:

• UPS has an Altman-Z score of 4.01. This indicates that UPS is financially healthy and has little risk of 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.
• 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.

Exploring NYSE:UPS's Profitability

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:

• With an excellent Return On Assets value of 14.23%, UPS belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
• 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%.
• UPS has a Profit Margin of 10.41%. This is amongst the best in the industry. UPS outperforms 93.75% of its industry peers.
• In the last couple of years the Profit Margin of UPS has grown nicely.
• Looking at the Operating Margin, with a value of 12.09%, UPS belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• In the last couple of years the Operating Margin of UPS has grown nicely.
• UPS's Gross Margin of 78.32% is amongst the best of 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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.