Exploring UNITED PARCEL SERVICE-CL B (NYSE:UPS)'s dividend characteristics.

Consider UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a top pick for dividend investors, identified by our stock screening tool. UPS shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Evaluating Dividend: 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. UPS scores a 7 out of 10:

• With a Yearly Dividend Yield of 5.69%, UPS is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.68, UPS pays a better dividend. On top of this UPS pays more dividend than 95.65% 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 2.39.
• On average, the dividend of UPS grows each year by 11.18%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Assessment of 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. UPS has received a 6 out of 10:

• An Altman-Z score of 3.24 indicates that UPS is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.24, UPS is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
• The Debt to FCF ratio of UPS is 3.43, which is a good value as it means it would take UPS, 3.43 years of fcf income to pay off 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 73.91% of the companies in the same industry.

Profitability Analysis for 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. UPS scores a 8 out of 10:

• UPS's Return On Assets of 8.25% is fine compared to the rest of the industry. UPS outperforms 78.26% of its industry peers.
• Looking at the Return On Equity, with a value of 34.59%, UPS belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
• UPS has a Return On Invested Capital of 12.47%. This is amongst the best in the industry. UPS outperforms 82.61% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for UPS is above the industry average of 12.38%.
• UPS's Profit Margin of 6.35% is amongst the best of the industry. UPS outperforms 82.61% of its industry peers.
• With an excellent Operating Margin value of 9.42%, UPS belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
• With an excellent Gross Margin value of 80.28%, UPS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

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

Keep in mind

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.