Uncovering Dividend Opportunities with NYSE:UPS.

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.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:UPS scores a 7 out of 10:

• With a Yearly Dividend Yield of 4.43%, UPS is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 2.74, UPS pays a better dividend. On top of this UPS pays more dividend than 94.12% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.41, UPS pays a better dividend.
• The dividend of UPS is nicely growing with an annual growth rate of 12.35%!
• UPS has been paying a dividend for at least 10 years, so it has a reliable track record.
• UPS has not decreased their dividend for at least 10 years, which is a reliable track record.

A Closer Look at Health 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 3.66. 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 3.66, UPS is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
• UPS has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as UPS would need 3.57 years to pay back of all of its debts.
• The Debt to FCF ratio of UPS (3.57) is better than 64.71% of its industry peers.

Assessing Profitability for NYSE:UPS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:UPS has achieved a 9:

• The Return On Assets of UPS (8.76%) is better than 88.24% of its industry peers.
• Looking at the Return On Equity, with a value of 35.05%, UPS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• UPS's Return On Invested Capital of 12.11% is amongst the best of the industry. UPS outperforms 88.24% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for UPS is significantly above the industry average of 7.70%.
• The last Return On Invested Capital (12.11%) for UPS is well below the 3 year average (17.34%), which needs to be investigated, but indicates that UPS had better years and this may not be a problem.
• The Profit Margin of UPS (6.60%) is better than 82.35% of its industry peers.
• In the last couple of years the Profit Margin of UPS has grown nicely.
• UPS has a Operating Margin of 9.15%. This is in the better half of the industry: UPS outperforms 76.47% of its industry peers.
• UPS's Gross Margin of 80.03% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.

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

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

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.