#5 - United Parcel Service (NYSE:UPS)
United Parcel Service Inc. (NYSE: UPS) has been a tough hold, with a negative total return of 30% in the past three years due to a package shortfall and higher labor costs from the renegotiated contract in 2023, among other factors.
Another unattractive feature could be an unsustainable payout ratio of around 80%. However, even if you believe the worst isn’t over for UPS stock, dividend investors should be encouraged by the company’s commitment to maintaining and raising its dividend.
One reason for that is the belief among many analysts that, with UPS a year removed from the contentious labor negotiations, it will have easier revenue and earnings expectations. And that will come at a time when the package shortfall is expected to turn into a surplus that should drive growth on the top and bottom lines and make the dividend even more attractive.
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
- $126.36
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $151.10 (19.6% Upside)
