Unearth the potential of UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a dividend stock recommended by our stock screening tool. UPS maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.
Looking at the Dividend
ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. UPS has been awarded a 7 for its dividend quality:
UPS has a Yearly Dividend Yield of 6.80%, which is a nice return.
Compared to an average industry Dividend Yield of 4.05, UPS pays a better dividend. On top of this UPS pays more dividend than 95.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, UPS pays a better dividend.
On average, the dividend of UPS grows each year by 11.18%, 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 their dividend for at least 10 years, which is a reliable track record.
How We Gauge Health for UPS
To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. UPS has earned a 6 out of 10:
UPS has an Altman-Z score of 3.09. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
UPS has a Altman-Z score of 3.09. This is in the better half of the industry: UPS outperforms 63.64% of its industry peers.
The Debt to FCF ratio of UPS is 3.43, which is a good value as it means it would take UPS, 3.43 years of fcf income to pay off all of its debts.
UPS's Debt to FCF ratio of 3.43 is fine compared to the rest of the industry. UPS outperforms 77.27% of its industry peers.
A Closer Look at Profitability for 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 UPS, the assigned 7 is noteworthy for profitability:
UPS has a better Return On Assets (8.25%) than 77.27% 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 86.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.47%, UPS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
With an excellent Profit Margin value of 6.35%, UPS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
UPS has a better Operating Margin (9.42%) than 81.82% of its industry peers.
UPS has a better Gross Margin (80.28%) than 100.00% of its industry peers.
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.