Analyzing NYSE:UPS's Dividend Potential.

Last update: Jul 9, 2024

Unearth the potential of UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a dividend stock recommended by our stock screening tool. NYSE:UPS maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Assessing Dividend for NYSE:UPS

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:UPS scores a 7 out of 10:

With a Yearly Dividend Yield of 4.81%, 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 94.12% of the companies in the same industry.
UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
The dividend of UPS is nicely growing with an annual growth rate of 12.35%!
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.

Understanding NYSE:UPS's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:UPS has achieved a 5 out of 10:

An Altman-Z score of 3.55 indicates that UPS is not in any danger for bankruptcy at the moment.
UPS's Altman-Z score of 3.55 is fine compared to the rest 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.

Assessing Profitability 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 better Return On Assets (8.76%) than 88.24% of its industry peers.
UPS's Return On Equity of 35.05% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.11%, UPS belongs to the best 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.
Looking at the Profit Margin, with a value of 6.60%, UPS belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
UPS's Profit Margin has improved in the last couple of years.
The Operating Margin of UPS (9.15%) is better than 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.

More Best Dividend stocks can be found 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 article should in no way be interpreted as advice. 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.