#6 - UPS (NYSE:UPS)
I can imagine you’re thinking that if I’m going to be pushing a stock that will benefit from the growth of e-commerce I should suggest Amazon (NASDAQ;AMZN). That’s a great choice. But AMZN stock doesn’t pay a dividend and that’s why UPS (NYSE:UPS) merits consideration.
UPS has an attractive, if not modest, yield of around 2.5%. However it’s the company’s payout ratio that is worth your attention. At around 39% it looks to have a lot of upside particularly considering the fact that demand for the company’s services is only going to increase in coming years. And despite the pandemic, UPS did manage to increase its dividend recently.
In fairness, FedEx (NYSE:FDX) has an attractive payout ratio as well. However, at this time UPS pays a higher yield.
Like many stocks on this list, UPS is not a stock for investors to buy with expectations of long-term growth. However, investors get a reliable dividend that provides income into and through their retirement years.
About United Parcel Service
United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.
Read More - Current Price
- $123.79
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $151.10 (22.1% Upside)
