Balancing Dividends and Fundamentals: The Case of UNITED PARCEL SERVICE-CL B (NYSE:UPS).

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.

Evaluating Dividend: NYSE:UPS

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 8 out of 10:

• With a Yearly Dividend Yield of 5.58%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 3.82. 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 11.18%!
• UPS has paid a dividend for at least 10 years, which is a reliable track record.
• UPS has not decreased their dividend for at least 10 years, which is a reliable track record.

What does the Health looks like for NYSE:UPS

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:UPS has received a 6 out of 10:

• An Altman-Z score of 3.31 indicates that UPS is not in any danger for bankruptcy at the moment.
• UPS has a Altman-Z score of 3.31. This is in the better half of the industry: UPS outperforms 63.16% of its industry peers.
• UPS has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as UPS would need 3.43 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.43, UPS is in the better half of the industry, outperforming 63.16% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:UPS was assigned a score of 8 for profitability:

• UPS has a better Return On Assets (8.25%) than 78.95% of its industry peers.
• UPS has a better Return On Equity (34.59%) than 89.47% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 12.38%, UPS belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 11.67%.
• UPS's Profit Margin of 6.35% is amongst the best of the industry. UPS outperforms 84.21% of its industry peers.
• UPS has a Operating Margin of 9.35%. This is amongst the best in the industry. UPS outperforms 89.47% of its industry peers.
• UPS's Gross Margin of 80.28% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of UPS contains the most current fundamental analsysis.

Disclaimer

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.