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

Key Points

• UPS declared a quarterly dividend of $1.64 per share (ex-dividend/record date May 18), payable June 4, implying a $6.56 annualized payout and a roughly 6.6% yield.
• Dividend sustainability: the company has raised its dividend for 16 consecutive years but growth has averaged just 0.1% annually over the past three years and the payout ratio is high at ~82.7%, though analysts expect next-year EPS (~$7.91) to keep the payout near 82.9%.
• Recent results: UPS beat Q1 EPS estimates ($1.07 vs. $1.02) with $21.2B in revenue (down 1.4% YoY); the stock trades at about a 16.2 PE with a market cap near $84.9B.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Investors of record on Monday, May 18th will be paid a dividend of 1.64 per share by the transportation company on Thursday, June 4th. This represents a c) annualized dividend and a dividend yield of 6.6%. The ex-dividend date is Monday, May 18th.

United Parcel Service has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 16 consecutive years. United Parcel Service has a 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. Analysts expect United Parcel Service to earn $7.91 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 82.9%.

United Parcel Service Price Performance

Shares of UPS opened at $99.96 on Thursday. The business has a 50-day simple moving average of $102.78 and a two-hundred day simple moving average of $102.12. United Parcel Service has a 12-month low of $82.00 and a 12-month high of $122.41. The stock has a market cap of $84.88 billion, a PE ratio of 16.16, a PEG ratio of 1.56 and a beta of 1.06. The company has a quick ratio of 1.22, a current ratio of 1.21 and a debt-to-equity ratio of 1.50.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The transportation company reported $1.07 EPS for the quarter, beating analysts' consensus estimates of $1.02 by $0.05. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The firm had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.99 billion. During the same quarter in the previous year, the company posted $1.49 EPS. The business's revenue was down 1.4% on a year-over-year basis. Analysts anticipate that United Parcel Service will post 7.1 earnings per share for the current fiscal year.

Analyst Ratings Changes

UPS has been the subject of several research reports. UBS Group reduced their price target on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. TD Cowen raised their price objective on shares of United Parcel Service from $101.00 to $115.00 and gave the company a "hold" rating in a research note on Wednesday, January 28th. Evercore decreased their target price on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating for the company in a research report on Wednesday, April 22nd. Bank of America raised shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $114.00 price target on the stock in a research report on Friday, January 9th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on United Parcel Service from $88.00 to $106.00 and gave the stock a "hold" rating in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, United Parcel Service currently has an average rating of "Hold" and an average target price of $112.08.

United Parcel Service Company Profile

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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