Is NYSE:UPS a Good Fit for Dividend Investing?

Our stock screener has singled out UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a promising choice for dividend investors. NYSE:UPS not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Assessment of NYSE:UPS

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:UPS has achieved a 8 out of 10:

• UPS has a Yearly Dividend Yield of 4.14%, which is a nice return.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.21. UPS pays more dividend than 100.00% of the companies in the same industry.
• UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.55.
• The dividend of UPS is nicely growing with an annual growth rate of 13.02%!
• 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.

What does the Health looks like for NYSE:UPS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:UPS has earned a 5 out of 10:

• UPS has an Altman-Z score of 3.89. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• UPS has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as UPS would need 3.80 years to pay back of all of its debts.

Profitability Analysis for NYSE:UPS

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:UPS, the assigned 9 is noteworthy for profitability:

• UPS's Return On Assets of 12.17% is amongst the best of the industry. UPS outperforms 93.75% of its industry peers.
• The Return On Equity of UPS (44.64%) is better than 100.00% of its industry peers.
• UPS's Return On Invested Capital of 14.08% is amongst the best of the industry. UPS outperforms 87.50% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for UPS is significantly above the industry average of 9.81%.
• Looking at the Profit Margin, with a value of 9.19%, UPS belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
• UPS's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 10.59%, UPS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
• In the last couple of years the Operating Margin of UPS has grown nicely.
• UPS has a Gross Margin of 79.16%. This is amongst the best in the industry. UPS outperforms 100.00% of its industry peers.

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Our latest full fundamental report of UPS 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.