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Why NYSE:UPS provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Apr 15, 2024

UNITED PARCEL SERVICE-CL B (NYSE:UPS) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:UPS 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.

Analyzing Dividend Metrics

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:UPS was assigned a score of 8 for dividend:

  • UPS has a Yearly Dividend Yield of 4.38%, which is a nice return.
  • UPS's Dividend Yield is rather good when compared to the industry average which is at 2.64. UPS pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.39, UPS pays a better dividend.
  • On average, the dividend of UPS grows each year by 12.35%, which is quite nice.
  • 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.

Health Assessment of 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 3.54. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
  • UPS has a Altman-Z score of 3.54. This is in the better half of the industry: UPS outperforms 64.71% of its industry peers.
  • UPS's Debt to FCF ratio of 4.38 is fine compared to the rest of the industry. UPS outperforms 64.71% of its industry peers.

Exploring NYSE:UPS's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:UPS scores a 9 out of 10:

  • The Return On Assets of UPS (9.47%) is better than 88.24% of its industry peers.
  • UPS has a Return On Equity of 38.76%. This is amongst the best in the industry. UPS outperforms 100.00% of its industry peers.
  • UPS's Return On Invested Capital of 13.42% is amongst the best of the industry. UPS outperforms 94.12% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for UPS is significantly above the industry average of 7.59%.
  • UPS's Profit Margin of 7.37% is amongst the best of the industry. UPS outperforms 82.35% 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 10.05%, UPS belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
  • The Gross Margin of UPS (79.74%) is better than 100.00% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of UPS

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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UNITED PARCEL SERVICE-CL B

NYSE:UPS (5/24/2024, 7:04:00 PM)

After market: 138.75 +0.09 (+0.06%)

138.66

-0.44 (-0.32%)

UPS News

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UPS (UPS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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