#1 - United Parcel Service (NYSE:UPS)
The last few years have been rough for United Parcel Service Inc. (NYSE: UPS) shareholders. The total return for UPS stock in the last three years is a negative 34%. The company has been battered by labor negotiations with the Teamsters union and fewer discretionary purchases by consumers.
However, through it all, UPS has continued to deliver for income investors in the way that matters most: a dividend. As of December 31, 2024, the stock has a 5.21% dividend yield. The company has also increased its dividend by an average annual rate of over 17% in the last three years.
The UPS dividend payout ratio was 98%. Income-oriented investors like to see high payout ratios, but a number above 80% is sometimes seen as dangerously high. However, on the company’s last earnings call in October, CEO Carol Tome reiterated that UPS was committed to paying and growing its dividend—which it has done for 15 consecutive years—explaining it would grow earnings to lower the payout ratio.
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
- $124.06
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $151.10 (21.8% Upside)
