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.

Looking at the Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:UPS earns a 7 out of 10:

• UPS has a Yearly Dividend Yield of 5.16%, which is a nice return.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.79. UPS pays more dividend than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, 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 their dividend for at least 10 years, which is a reliable track record.

Assessing Health Metrics 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 3.43 indicates that UPS is not in any danger for bankruptcy at the moment.
• UPS has a Altman-Z score of 3.43. This is in the better half of the industry: UPS outperforms 63.16% of its industry peers.
• 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.

A Closer Look at 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:

• Looking at the Return On Assets, with a value of 8.30%, UPS belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• The Return On Equity of UPS (33.61%) is better than 94.74% of its industry peers.
• UPS's Return On Invested Capital of 11.84% is fine compared to the rest of the industry. UPS outperforms 78.95% of its industry peers.
• UPS had an Average Return On Invested Capital over the past 3 years of 17.31%. This is significantly above the industry average of 10.93%.
• 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.
• Looking at the Profit Margin, with a value of 6.25%, UPS belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• UPS's Profit Margin has improved in the last couple of years.
• The Operating Margin of UPS (8.90%) is better than 89.47% of its industry peers.
• UPS has a better Gross Margin (79.88%) 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

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.