Why the dividend investor may take a look at NYSE:UPS.

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 Analysis for 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 5.78%, UPS is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.86, UPS pays a better dividend. On top of this UPS pays more dividend than 100.00% of the companies listed in the same industry.
• UPS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
• The dividend of UPS is nicely growing with an annual growth rate of 11.18%!
• UPS has paid a dividend for at least 10 years, which is 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 assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:UPS was assigned a score of 6 for health:

• An Altman-Z score of 3.26 indicates that UPS is not in any danger for bankruptcy at the moment.
• UPS has a better Altman-Z score (3.26) than 68.42% of its industry peers.
• UPS has a debt to FCF ratio of 3.43. This is a good value and a sign of high solvency as UPS would need 3.43 years to pay back of all of its debts.
• UPS has a Debt to FCF ratio of 3.43. This is in the better half of the industry: UPS outperforms 68.42% of its industry peers.

Profitability Examination for NYSE:UPS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:UPS has earned a 8 out of 10:

• The Return On Assets of UPS (8.25%) is better than 78.95% of its industry peers.
• Looking at the Return On Equity, with a value of 34.59%, UPS belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 12.38%, UPS belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for UPS is above the industry average of 11.30%.
• The Profit Margin of UPS (6.35%) is better than 84.21% of its industry peers.
• UPS has a better Operating Margin (9.35%) than 89.47% of its industry peers.
• Looking at the Gross Margin, with a value of 80.28%, UPS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.

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

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. 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.