Is INTERPUBLIC GROUP OF COS INC (NYSE:IPG) a Good Fit for Dividend Investing?

INTERPUBLIC GROUP OF COS INC (NYSE:IPG) has caught the attention of dividend investors as a stock worth considering. IPG excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Insights: IPG

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. IPG has been assigned a 8 for dividend:

• IPG has a Yearly Dividend Yield of 5.49%, which is a nice return.
• Compared to an average industry Dividend Yield of 5.06, IPG pays a better dividend. On top of this IPG pays more dividend than 90.72% 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 2.57.
• The dividend of IPG is nicely growing with an annual growth rate of 7.02%!
• 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 Analysis for IPG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. IPG has earned a 5 out of 10:

• IPG has a Altman-Z score of 1.62. This is in the better half of the industry: IPG outperforms 67.01% of its industry peers.
• IPG has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as IPG would need 3.24 years to pay back of all of its debts.
• The Debt to FCF ratio of IPG (3.24) is better than 81.44% of its industry peers.

Analyzing Profitability Metrics

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 IPG, the assigned 8 is noteworthy for profitability:

• The Return On Assets of IPG (3.76%) is better than 79.38% of its industry peers.
• Looking at the Return On Equity, with a value of 18.16%, IPG belongs to the top of the industry, outperforming 85.57% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 12.25%, IPG belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
• IPG had an Average Return On Invested Capital over the past 3 years of 12.24%. This is significantly above the industry average of 6.94%.
• The last Return On Invested Capital (12.25%) for IPG is above the 3 year average (12.24%), which is a sign of increasing profitability.
• IPG's Profit Margin of 6.45% is fine compared to the rest of the industry. IPG outperforms 78.35% of its industry peers.
• With a decent Operating Margin value of 13.38%, IPG is doing good in the industry, outperforming 73.20% of the companies in the same industry.
• In the last couple of years the Operating Margin of IPG has grown nicely.
• In the last couple of years the Gross Margin of IPG has grown nicely.

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

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.