Why NYSE:IPG is a Top Pick for Dividend Investors.

INTERPUBLIC GROUP OF COS INC (NYSE:IPG) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:IPG scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Understanding NYSE:IPG's Dividend Score

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:IPG was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 3.66, IPG pays a better dividend. On top of this IPG pays more dividend than 89.80% of the companies listed in the same industry.
• IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
• The dividend of IPG is nicely growing with an annual growth rate of 10.11%!
• IPG has paid a dividend for at least 10 years, which is a reliable track record.
• IPG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Assessment of NYSE:IPG

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:IPG has achieved a 5 out of 10:

• IPG's Altman-Z score of 1.82 is fine compared to the rest of the industry. IPG outperforms 68.37% of its industry peers.
• IPG has a better Debt to FCF ratio (4.32) than 82.65% of its industry peers.

Assessing Profitability for NYSE:IPG

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:IPG, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 5.48%, IPG belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 25.34%, IPG belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
• The Return On Invested Capital of IPG (12.56%) is better than 92.86% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for IPG is above the industry average of 6.97%.
• The last Return On Invested Capital (12.56%) for IPG is above the 3 year average (11.42%), which is a sign of increasing profitability.
• IPG's Profit Margin of 8.59% is fine compared to the rest of the industry. IPG outperforms 76.53% of its industry peers.
• In the last couple of years the Profit Margin of IPG has grown nicely.
• Looking at the Operating Margin, with a value of 13.10%, IPG is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
• IPG's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of IPG has grown nicely.

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.