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.

Understanding NYSE:UPS's Dividend Score

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:UPS has received a 7 out of 10:

• With a Yearly Dividend Yield of 5.02%, UPS is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 2.64, UPS pays a better dividend. On top of this UPS pays more dividend than 94.74% 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 2.28.
• The dividend of UPS is nicely growing with an annual growth rate of 12.35%!
• 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 Insights: NYSE:UPS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:UPS scores a 5 out of 10:

• UPS has an Altman-Z score of 3.47. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• UPS's Altman-Z score of 3.47 is fine compared to the rest of the industry. UPS outperforms 68.42% of its industry peers.
• With a decent Debt to FCF ratio value of 5.03, UPS is doing good in the industry, outperforming 73.68% of the companies in the same industry.

What does the Profitability looks like for NYSE:UPS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:UPS, the assigned 9 is a significant indicator of profitability:

• UPS's Return On Assets of 8.30% is amongst the best of the industry. UPS outperforms 84.21% of its industry peers.
• UPS has a better Return On Equity (33.61%) than 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.
• Measured over the past 3 years, the Average Return On Invested Capital for UPS 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.
• 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.
• UPS has a Operating Margin of 8.90%. This is amongst the best in the industry. UPS outperforms 89.47% of its industry peers.
• 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.

Every day, new Best Dividend stocks can be found on ChartMill 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 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.