Uncovering Dividend Opportunities with NYSE:UPS.

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.

How We Gauge Dividend for 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 4.86%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.63. UPS pays more dividend than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.21, UPS pays a better dividend.
• 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.

Deciphering NYSE:UPS's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:UPS was assigned a score of 5 for health:

• An Altman-Z score of 3.51 indicates that UPS is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 3.51, UPS is doing good in the industry, outperforming 63.16% of the companies in the same industry.
• UPS's Debt to FCF ratio of 5.03 is fine compared to the rest of the industry. UPS outperforms 73.68% of its industry peers.

Profitability Analysis for NYSE:UPS

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:

• The Return On Assets of UPS (8.30%) is better than 78.95% of its industry peers.
• UPS has a Return On Equity of 33.61%. This is amongst the best in the industry. UPS outperforms 94.74% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.84%, UPS is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
• UPS had an Average Return On Invested Capital over the past 3 years of 17.31%. This is above the industry average of 13.72%.
• The 3 year average ROIC (17.31%) for UPS is well above the current ROIC(11.84%). The reason for the recent decline needs to be investigated.
• The Profit Margin of UPS (6.25%) is better than 84.21% of its industry peers.
• UPS's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 8.90%, UPS belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 79.88%, UPS belongs to the top 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

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.