United Parcel Service, Inc. Announces Quarterly Dividend of $1.64 (NYSE:UPS)

Key Points

• UPS declared a quarterly dividend of $1.64 per share, payable September 3 to shareholders of record on August 17. The dividend implies a 6.1% annualized yield, and UPS has increased its dividend for 16 consecutive years.
• The dividend payout ratio is 82.7%, indicating current earnings cover the dividend but leave limited room if profits decline. Analysts expect next year’s earnings of $7.93 per share against an annual dividend of $6.56.
• UPS recently exceeded quarterly expectations, reporting $1.76 in EPS and $22.83 billion in revenue, up 7.6% year over year. Institutional investors own approximately 60.26% of the company’s stock.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Monday, August 17th will be paid a dividend of 1.64 per share by the transportation company on Thursday, September 3rd. This represents a c) dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend is Monday, August 17th.

United Parcel Service has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 16 years. United Parcel Service has a dividend payout ratio of 82.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect United Parcel Service to earn $7.93 per share next year, which means the company should continue to be able to cover its $6.56 annual dividend with an expected future payout ratio of 82.7%.

United Parcel Service Price Performance

United Parcel Service stock opened at $107.74 on Thursday. United Parcel Service has a 12 month low of $82.00 and a 12 month high of $122.41. The stock's 50 day moving average is $109.44 and its 200-day moving average is $106.66. The company has a current ratio of 1.18, a quick ratio of 1.21 and a debt-to-equity ratio of 1.58. The company has a market capitalization of $91.58 billion, a price-to-earnings ratio of 20.03, a PEG ratio of 1.97 and a beta of 1.06.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping the consensus estimate of $1.65 by $0.11. The business had revenue of $22.83 billion during the quarter, compared to analysts' expectations of $21.86 billion. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%.The firm's revenue for the quarter was up 7.6% compared to the same quarter last year. During the same period last year, the firm posted $1.55 EPS. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. Equities research analysts expect that United Parcel Service will post 7.21 EPS for the current year.

Institutional Trading of United Parcel Service

Several large investors have recently modified their holdings of the stock. Wedge Capital Management L L P NC grew its holdings in United Parcel Service by 5.0% in the second quarter. Wedge Capital Management L L P NC now owns 120,800 shares of the transportation company's stock worth $12,986,000 after purchasing an additional 5,774 shares during the period. Butensky & Cohen Financial Security Inc. lifted its holdings in shares of United Parcel Service by 1.7% in the second quarter. Butensky & Cohen Financial Security Inc. now owns 38,387 shares of the transportation company's stock valued at $4,127,000 after purchasing an additional 637 shares in the last quarter. Tema ETFs LLC lifted its stake in United Parcel Service by 10.0% during the 2nd quarter. Tema ETFs LLC now owns 14,367 shares of the transportation company's stock valued at $1,544,000 after acquiring an additional 1,305 shares in the last quarter. Canvas Wealth Advisors LLC purchased a new position in United Parcel Service during the second quarter worth about $239,000. Finally, Arkfeld Wealth Strategies L.L.C. boosted its stake in shares of United Parcel Service by 3.0% in the 2nd quarter. Arkfeld Wealth Strategies L.L.C. now owns 52,770 shares of the transportation company's stock worth $5,806,000 after buying an additional 1,524 shares during the last quarter. Institutional investors and hedge funds own 60.26% of the company's stock.

About United Parcel Service

United Parcel Service NYSE: UPS is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.

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