Why NYSE:UPS provides a good dividend, while having solid fundamentals.

Last update: Nov 2, 2023

Our stock screening tool has identified UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a strong dividend contender with robust fundamentals. NYSE:UPS exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend for NYSE:UPS

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:UPS earns a 8 out of 10:

UPS has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 2.35, 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 2.78.
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

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 5 reflects its health status:

An Altman-Z score of 3.66 indicates that UPS is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of UPS is 3.80, which is a good value as it means it would take UPS, 3.80 years of fcf income to pay off all of its debts.
UPS's Debt to FCF ratio of 3.80 is fine compared to the rest of the industry. UPS outperforms 62.50% of its industry peers.

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:

The Return On Assets of UPS (12.17%) is better than 93.75% of its industry peers.
UPS has a better Return On Equity (44.64%) than 100.00% of its industry peers.
UPS has a better Return On Invested Capital (14.08%) 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 11.17%.
UPS has a Profit Margin of 9.19%. 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.
UPS has a Operating Margin of 10.59%. This is amongst the best in the industry. UPS outperforms 81.25% 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 79.16%, UPS belongs to the best 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.

For an up to date full fundamental analysis you can check the fundamental report of UPS

Keep in mind

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.