Consider UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a top pick for dividend investors, identified by our stock screening tool. NYSE:UPS shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.
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 4.20%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.54, 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 2.34, UPS pays a better dividend.
- The dividend of UPS is nicely growing with an annual growth rate of 12.35%!
- 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.
Health Examination for NYSE:UPS
To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:UPS has earned a 5 out of 10:
- UPS has an Altman-Z score of 3.65. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
- UPS's Altman-Z score of 3.65 is fine compared to the rest of the industry. UPS outperforms 64.71% of its industry peers.
- With a decent Debt to FCF ratio value of 4.38, UPS is doing good in the industry, outperforming 64.71% of the companies in the same industry.
Profitability Analysis for 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:
- UPS has a Return On Assets of 9.47%. This is amongst the best in the industry. UPS outperforms 88.24% of its industry peers.
- UPS has a Return On Equity of 38.76%. This is amongst the best in the industry. UPS outperforms 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.42%, UPS belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
- UPS had an Average Return On Invested Capital over the past 3 years of 17.34%. This is significantly above the industry average of 7.63%.
- UPS has a Profit Margin of 7.37%. This is amongst the best in the industry. UPS outperforms 82.35% of its industry peers.
- In the last couple of years the Profit Margin of UPS has grown nicely.
- The Operating Margin of UPS (10.05%) is better than 88.24% of its industry peers.
- UPS's Gross Margin of 79.74% 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
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.