United Parcel Service: Buy This Undervalued Income Pick Now

Kody's Dividends
10.03K Followers

Summary

  • Amid a turnaround, United Parcel Service announced a token dividend increase in January to extend its dividend growth streak to 15 years.
  • The company's Q4 2023 results were mixed, with revenue slightly missing analysts' expectations and non-GAAP EPS surpassing expectations.
  • Despite experiencing temporary operating issues, UPS was able to service its debt from earnings with ease in 2023.
  • Shares of the logistics juggernaut could be trading at a 17% discount to fair value.
  • UPS's outsized dividend yield and undervaluation could position it for strong returns in the years to come.

UPS Workers On Verge Of Strike

A UPS driver delivers packages on a route.

Joe Raedle/Getty Images News

As a dividend growth investor, I highly value businesses that value their shareholders. What I mean is companies that are committed to returning capital to shareholders via share repurchases and

This article was written by

10.03K Followers
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UPS, AMZN 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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