Balancing Dividends and Fundamentals: The Case of NYSE:IPG.

Consider INTERPUBLIC GROUP OF COS INC (NYSE:IPG) as a top pick for dividend investors, identified by our stock screening tool. NYSE:IPG shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Examination for NYSE:IPG

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 8 for dividend:

• IPG has a Yearly Dividend Yield of 4.39%, which is a nice return.
• IPG's Dividend Yield is rather good when compared to the industry average which is at 3.91. IPG pays more dividend than 90.11% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.21, IPG pays a better dividend.
• On average, the dividend of IPG grows each year by 8.30%, which is quite nice.
• IPG has been paying a dividend for at least 10 years, so it has 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 Analysis for NYSE:IPG

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:IPG has received a 5 out of 10:

• Looking at the Altman-Z score, with a value of 1.82, IPG is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
• The Debt to FCF ratio of IPG is 3.19, which is a good value as it means it would take IPG, 3.19 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of IPG (3.19) is better than 84.62% of its industry peers.

What does the Profitability looks like for NYSE:IPG

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:IPG has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 4.73%, IPG is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
• The Return On Equity of IPG (21.69%) is better than 91.21% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 13.18%, IPG belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 7.44%.
• The 3 year average ROIC (12.64%) for IPG is below the current ROIC(13.18%), indicating increased profibility in the last year.
• IPG has a Profit Margin of 7.44%. This is in the better half of the industry: IPG outperforms 73.63% 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 13.60%, IPG is in the better half of the industry, outperforming 73.63% of the companies in the same industry.
• IPG's Operating Margin has improved in the last couple of years.
• IPG's Gross Margin has improved in the last couple of years.

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

Check the latest full fundamental report of IPG 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.