Why the dividend investor may take a look at NYSE:UPS.

Take a closer look at UNITED PARCEL SERVICE-CL B (NYSE:UPS), a stock of interest to dividend investors uncovered by our stock screener. NYSE:UPS excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Exploring NYSE:UPS's Dividend

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 7 for dividend:

• With a Yearly Dividend Yield of 5.07%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.65. UPS pays more dividend than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.29, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

A Closer Look at Health for NYSE:UPS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:UPS, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 3.39 indicates that UPS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of UPS (3.39) is better than 61.11% of its industry peers.
• UPS's Debt to FCF ratio of 4.79 is fine compared to the rest of the industry. UPS outperforms 72.22% of its industry peers.

Profitability Analysis 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 8 for profitability:

• The Return On Assets of UPS (7.57%) is better than 77.78% of its industry peers.
• UPS has a better Return On Equity (30.85%) than 88.89% of its industry peers.
• The Return On Invested Capital of UPS (10.67%) is better than 72.22% of its industry peers.
• The last Return On Invested Capital (10.67%) for UPS is well below the 3 year average (17.31%), 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 5.87%, UPS belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
• UPS's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 8.30%, UPS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
• UPS has a better Gross Margin (79.83%) than 100.00% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of UPS contains the most current fundamental analsysis.

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.