Uncovering Dividend Opportunities with NYSE:UPS.

UNITED PARCEL SERVICE-CL B (NYSE:UPS) has caught the attention of dividend investors as a stock worth considering. NYSE:UPS excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Assessing Dividend Metrics 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:

• UPS has a Yearly Dividend Yield of 4.89%, which is a nice return.
• Compared to an average industry Dividend Yield of 2.62, 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 2.20, UPS pays a better dividend.
• 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.

A Closer Look at 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 3.43. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• UPS has a Altman-Z score of 3.43. This is in the better half of the industry: UPS outperforms 61.11% of its industry peers.
• UPS has a Debt to FCF ratio of 4.79. This is in the better half of the industry: UPS outperforms 72.22% of its industry peers.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:UPS, the assigned 8 is noteworthy for profitability:

• 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.
• With an excellent Return On Equity value of 30.85%, UPS belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 10.67%, UPS is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
• The 3 year average ROIC (17.31%) for UPS is well above the current ROIC(10.67%). The reason for the recent decline needs to be investigated.
• UPS's Profit Margin of 5.87% is amongst the best of the industry. UPS outperforms 88.89% of its industry peers.
• UPS's Profit Margin has improved in the last couple of years.
• The Operating Margin of UPS (8.30%) is better than 88.89% of its industry peers.
• UPS's Gross Margin of 79.83% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.

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Check the latest full fundamental report of UPS for a complete fundamental analysis.

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.