Is NYSE:UPS suited for dividend investing?

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.

Evaluating Dividend: 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 7 for dividend:

• With a Yearly Dividend Yield of 4.83%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.83. 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 2.39.
• On average, the dividend of UPS grows each year by 12.35%, 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.

How do we evaluate the Health 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 3.56. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• UPS has a Altman-Z score of 3.56. This is in the better half of the industry: UPS outperforms 64.71% of its industry peers.
• UPS has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as UPS would need 3.57 years to pay back of all of its debts.
• The Debt to FCF ratio of UPS (3.57) is better than 70.59% of its industry peers.

Profitability Assessment of 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's Return On Assets of 8.76% is amongst the best of the industry. UPS outperforms 88.24% of its industry peers.
• UPS has a Return On Equity of 35.05%. 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 12.11%, UPS belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for UPS is significantly above the industry average of 7.28%.
• The last Return On Invested Capital (12.11%) for UPS is well below the 3 year average (17.34%), which needs to be investigated, but indicates that UPS had better years and this may not be a problem.
• UPS's Profit Margin of 6.60% is amongst the best of the industry. UPS outperforms 88.24% of its industry peers.
• In the last couple of years the Profit Margin of UPS has grown nicely.
• UPS has a Operating Margin of 9.15%. This is amongst the best in the industry. UPS outperforms 88.24% of its industry peers.
• With an excellent Gross Margin value of 80.03%, UPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

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

Disclaimer

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.