Is NYSE:UPS suited for dividend investing?

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

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:

• With a Yearly Dividend Yield of 4.14%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 2.34. 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 2.50.
• On average, the dividend of UPS grows each year by 13.02%, which is quite nice.
• UPS has paid a dividend for at least 10 years, which is 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 NYSE:UPS

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:UPS, the assigned 5 reflects its health status:

• UPS has an Altman-Z score of 3.86. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.86, UPS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• The Debt to FCF ratio of UPS is 3.80, which is a good value as it means it would take UPS, 3.80 years of fcf income to pay off all of its debts.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:UPS was assigned a score of 9 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.
• UPS has a Return On Equity of 44.64%. This is amongst the best in the industry. UPS outperforms 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.08%, UPS belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for UPS is significantly above the industry average of 9.83%.
• UPS has a better Profit Margin (9.19%) than 93.75% of its industry peers.
• In the last couple of years the Profit Margin of UPS has grown nicely.
• Looking at the Operating Margin, with a value of 10.59%, UPS belongs to the top 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.
• The Gross Margin of UPS (79.16%) is better than 100.00% of its industry peers.

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Check the latest full fundamental report of UPS 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.