Why UNITED PARCEL SERVICE-CL B (NYSE:UPS) is a Top Pick for Dividend Investors.

Our stock screener has spotted UNITED PARCEL SERVICE-CL B (NYSE:UPS) as a good dividend stock with solid fundamentals. UPS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

A Closer Look at Dividend for UPS

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. UPS earns a 7 out of 10:

• With a Yearly Dividend Yield of 6.77%, UPS is a good candidate for dividend investing.
• UPS's Dividend Yield is rather good when compared to the industry average which is at 3.91. UPS pays more dividend than 95.45% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.40, UPS pays a better dividend.
• The dividend of UPS is nicely growing with an annual growth rate of 11.18%!
• 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.

How do we evaluate the Health for UPS?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. UPS scores a 5 out of 10:

• UPS has an Altman-Z score of 3.14. This indicates that UPS is financially healthy and has little risk of bankruptcy at the moment.
• UPS's Altman-Z score of 3.14 is fine compared to the rest of the industry. UPS outperforms 63.64% of its industry peers.
• The Debt to FCF ratio of UPS is 3.98, which is a good value as it means it would take UPS, 3.98 years of fcf income to pay off all of its debts.
• UPS has a Debt to FCF ratio of 3.98. This is in the better half of the industry: UPS outperforms 68.18% of its industry peers.

How do we evaluate the Profitability for UPS?

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. UPS was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 8.55%, UPS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
• The Return On Equity of UPS (37.39%) is better than 95.45% of its industry peers.
• UPS has a Return On Invested Capital of 12.73%. This is amongst the best in the industry. UPS outperforms 86.36% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for UPS is above the industry average of 11.64%.
• UPS's Profit Margin of 6.44% is amongst the best of the industry. UPS outperforms 86.36% of its industry peers.
• Looking at the Operating Margin, with a value of 9.48%, UPS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
• UPS's Gross Margin of 80.82% is amongst the best of the industry. UPS outperforms 100.00% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.