Why NYSE:UPS qualifies as a good dividend investing stock.

Our stock screener has spotted UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a good dividend stock with solid fundamentals. NYSE:UPS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

ChartMill's Evaluation of Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:UPS has achieved a 7 out of 10:

• UPS has a Yearly Dividend Yield of 5.12%, which is a nice return.
• Compared to an average industry Dividend Yield of 2.75, 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 2.26.
• On average, the dividend of UPS grows each year by 12.35%, which is quite nice.
• 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.

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 3.38. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.38, UPS is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 4.79, UPS is doing good in the industry, outperforming 72.22% of the companies in the same industry.

Profitability Examination for NYSE:UPS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:UPS has achieved a 8:

• Looking at the Return On Assets, with a value of 7.57%, UPS is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
• UPS has a better Return On Equity (30.85%) than 88.89% of its industry peers.
• UPS has a Return On Invested Capital of 10.67%. This is in the better half of the industry: UPS outperforms 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.
• UPS has a better Profit Margin (5.87%) than 88.89% of its industry peers.
• 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 88.89% of the companies in the same industry.
• With an excellent Gross Margin value of 79.83%, 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 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.