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United Parcel Service: Continues To Deliver The Goods, Now Show Me The Dividend Growth

Jan. 01, 2022 10:02 PM ETUnited Parcel Service, Inc. (UPS)17 Comments
Passive Income Pursuit profile picture
Passive Income Pursuit


  • United Parcel Service is a Dividend Contender with a 12-year streak of annual dividend growth. Shares currently yield 1.90%.
  • United Parcel Service is poised to benefit from the supply chain disruptions seen since early 2020 and further growth in global package delivery.
  • United Parcel Service is poised to deliver solid returns for investors.

Transportation Secretary Buttigieg Tours UPS Facility Distributing Vaccines

Alex Wong/Getty Images News

As we all learned over the last few years, home delivery of goods is critical and has been taking more share over traditional in-store purchasing. Spurred by the lockdowns and a fear of the unknown surrounding the

This article was written by

Passive Income Pursuit profile picture
I started a dividend growth investment strategy a few years ago and am aggressively growing my portfolio to churn out enough dividends to reach financial independence.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UPS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (17)

She showed you today by doubling the dividend
Clay King profile picture
@DLSheeler 49%. not 100%
I prefer to invest in companies that treat their employees fairly, which every company assures me is true. At UPS the Teamsters also assures me. Very glad.
if we use 215 as our pps to figure our dividend then
215@2.75 yield would give us 1.48 a share / per qt
215@2.5 yield would give us 1.34 a share per qt
215@2.1 yield would give us 1.12 a share per qt
215@1.9 yield gives us our current 1.02 per share
Carol has gotten herself into a tricky situation with her dividend statement,
the Board always releases the new dividend at there early Feb
meeting-so as they say, time will tell
any guess?
would love to see a 2.5 percent yield
$0.06 (quarter) × 4 = $0.24 (annual)
4.08 to 4.40
I'll take that
$0.06 I'll take, but Ms Tome has me prepared for I higher number. What that is I don't know. $0.50?..don't think so. Would be nice.
This might be the best peak eve...in a long time.
@kemokelso that would be in line with the past dividend increases
I'm thinking 1.12 per qt
PT Larry profile picture
Thanks for the article.
Do people listen to earnings calls ? Carol said the dividend increase would be 50% of FCF. Model using that knowledge
Sometimes we need to step back from figures to see the whole picture. The numbers in the article show a business volume growth but limited profit growth.
It is a highly competitive business. Shippers such as Amazon are given vastly reduced rates. Competition, there is Fedex and even the US Postal system.
Amazon also now does their own deliveries, choosing the most profitable, least costly places to deliver. Add to that increased cost for labor, fuel even tires trucks and for UPS planes. I hold both UPS and Fedex. Too many people, including me, tend to think business will go back to what it was. It will not.
A good lower middle management view of UPS. I didn’t see one reference to quality of mgmt or strategic initiatives. Typical SA rear view mirror analysis . . . . .
watch out for that 2,000lb buffalo in the road ahead as you barrel towards it doing 75 mph looking into that rear view mirror.
@JDoe20 People's view of everything is distorted by their position. "Lower management view." Labor is a significant cost. Imagine a letter, we are cutting salaries and benefits to increase the dividend. Lower upper management pay? Would they vote their shares to cut their pay?
Solid company UPS, wait for a dip before adding. In the space FDX, is the better buy at this time.
Dividend increase coming?
Not sure they beat their eps for the peek quarter
coloradoeveryday profile picture
UPS has stated they will payout ~50% of EPS in dividends. So your $1.10/Q is way low. It should be closer to $1.50/Q!
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