Sector Support Services Country United States Share Price $171.36 (yesterday's closing price) Shares in Issue 724 million Market Cap $124.0bn. November 9, 2020 / UPS Peak Surcharge Update . The dividend has more than quadrupled over the last 20 years, demonstrating a continued commitment to … UPS Board Increases Quarterly Dividend. UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Subscribe to Dividend Power’s E-mail List. The company’s sustainability eNewsletter, UPS Horizons, can be found at ups.com/sustainabilitynewsletter. Average daily volume increased 12.1% including strong export growth from Asia. The name of my blog might be a clue, but I am currently and engineer who has a huge passion for dividend growth investing where my end goal is to cover all of my expenses within the next 10 to 15 years. Copyright (c) 2019 - 2020. Dividend Power LLC. During the same time EPS has grown from $3.33 to $5.11 which gives a CAGR of 4.38%. Using a discounted cash flow model with a discount rate of 6.25% the fair value for UPS was $177.51. This is a hard dividend increase to predict, which is why I am excited to see what they have up their sleeve in 2020. Notify me of follow-up comments by email. In 2019, UPS paid $0.96 per share quarterly, or $3.84 per share for the year, representing a … So far this year, UPS has distributed $1.8 billion in dividends, which represents a 5.2% increase on a per-share basis over the same period last year. In the press release announcing the 2019 and 2020 dividend increases, management states: “UPS has a long commitment to cash dividends. Possible reasons for receiving this error Corrective action(s) Accessing from a virtual machine and/or managed hosting environment: Use a physical, local machine While their current yield is greater than the SP500 by 147%, I require at least 200% here to give full marks. UPS continues to expand their international Express time-definite portfolio which now reaches as many as 220 countries and territories. Dividend Cover How many times is the dividend … Below is the Goodwill on the balance sheet over the last six years which is no surprise as they have bought companies such as Nightline, Coyote Logistics and Kiala. Over the last 10 years revenue has increased from $49,545 million to $74,094 million as of 2019. Europe is the largest region outside of the U.S. and accounts for approximately half of its international small package segment revenue and they have built new hubs in London, Paris, and Eindhoven. The payout Ratio is a good indicator of the sustainability of dividends. Dividend Increase – The Coca-Cola Company (KO) Recent Buy - United Parcel Service, Inc. (UPS) Dividend Increase – PepsiCo, Inc. (PEP) Week in Review 7/20; Dividend Increase – United Parcel Service Inc. (UPS) Dividend Increase – Cisco Systems, Inc. (CSCO) Dividend Increase – T. Rowe Price Group, Inc. (TROW) Dividend Income January 2020 By reading this site or subscribing to it, you agree that you are solely responsible for making investment decisions in connection with your funds. In the last 20 years, the dividend has more than quadrupled. The next dividend payment date is in December where UPS will pay $1.01 per share. The industry average is 17.58X. UPS has some factors that are nice. Net Income increased 11.8% to $1,957 million and diluted earnings per share increased 11.4% to $2.24. On the balance sheet I like to check the assets and liabilities a company has and to calculate the book value, or shareholder equity. I like to see a company that has free cash flow equal to at least 65% of net income over the last 10 years. To avoid this problem, the acquiring company can put the difference between the purchase price and tangible book value of the acquired company on their balance sheet as “goodwill”. This gives a CAGR of 4.11%. All Rights Reserved 2020. The historical dividend information provided is for informational purposes only, and is not … The platform provides professional level tools for the individual investor, UPS is split into three main operating segments. I generally look through 5 to 10 years of statements where I am interested in the average growth of revenue, net Income, and earnings per share. The dividend … Find the latest dividend history for United Parcel Service, Inc. Common Stock (UPS) at Nasdaq.com. Disclaimer: Dividend Power is not a licensed or registered investment adviser or broker/dealer. When starting to analyse a companies’ financial position, I start with the income statement. If you would like notifications as to when my new articles are published, please sign up for my free weekly e-mail. The company raised its quarterly dividend by 5% to 5.25 cents/share. Last Updated on December 27, 2020 by Dividend Power. I suggest reading my Review of The Sure Dividend Newsletter. At the end of 2019, UPS had a D/E ratio of 16.62, which is higher than the industry average of 0.79. The dividend is payable March 10, 2020 to shareowners of record on Feb. 25, 2020. The below screenshot will show you the revenue for each segment in 2019. While UPS is a Dividend Contender and has a strong track record with increasing dividends, the earnings have not been too impressive. ATLANTA, Feb. 13, 2020 -- The UPS (NYSE: UPS) Board of Directors today increased its regular quarterly dividend to $1.01 per share on all outstanding Class A and Class B. For more than five decades, UPS has rewarded investors with a strong dividend that has either been maintained or increased. For nearly half a century, UPS’s dividend has either increased or been maintained. At current prices, I have estimated that it will take over 18 years to reach a yield-on-cost of over 10%. UPS' 5.2% quarterly dividend hike bears testimony to its financial strength. Over the past decade, it has managed to grow dividends at an annualized rate of 14.10%. UPS's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! If you are interested in an excellent resource for DIY dividend growth investors. Stock Rover* tracks over 8,500 stocks, over 4,000 ETFs, and over 40,000 mutual funds. The most recent dividend increase came in February 2020 where the dividend was increased by 5.2%. The dividend is payable June 10, 2020 to shareowners of record on May 26, 2020. Your email address will not be published. This would be a second red flag to me, particularly when we have seen nearly $10 billion worth of share buy backs in that period. As discussed above earnings have not been too good as it has been relatively flat over the last 5 years. I typically like to invest in companies with lower debt and a stronger balance sheet. The dividend growth rate has been stable with 7.46% DGI over the last 5 years and 7.87% over the last 10 years. UPS increased its quarterly dividend to $1.01 per share ($4.04 annually) on all outstanding Class A and Class B shares from 96 cents. Cash flow has been a mixed bag over the last 10 years and dividends are not always well covered by both earnings per share and free cash flow. If goodwill and other intangible assets are excluded from total assets when calculating shareholder equity, then you get the tangible book value. The next dividend payment date is in December where UPS will pay $1.01 per share. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The new annualized dividend rate of $1.80 per share yields 1.7% at a stock price of $107. This is their largest segment and in 2019 it generated 62.7% of revenue. UPS has paid uninterrupted dividends since 1969. On Feb 13, UPS declared a quarterly dividend of $1.01 per share. × Welcome to Dividend.com Please help us personalize your experience. However, I have some concerns. Revenue for the US Domestic package increased 15.5% which was driven by ground and deferred products which increased by $1.7 billion. ATLANTA, Feb. 13, 2020 (GLOBE NEWSWIRE) -- The UPS (NYSE: UPS) Board of Directors today increased its regular quarterly dividend to $1.01 per share on all outstanding Class A and Class B shares. When examining dividend safety, I like to see the earnings grow at a similar rate to the dividend growth rate to ensure the company can continue to grow the dividend in the future. UPS Next Dividend Date Projection Last known ex-date: 11/12/20 Last known frequency: Quarterly Last known quarterly dividend: 1.01 Expected annual yield: 2.35% Typical ex-date schedule: February 24th; May 18th; August 17th; November 15th; Predicted Next Dividend Ex-Date For UPS: … For those that don’t know me, my name is Derek. Read: BP Sees Virus Wiping Out One-Third of Oil Demand Growth in 2020 BP shares rose 4.4% to 472.75 pence as of 11:38 a.m. in London, the biggest increase since September. But more worryingly the FCF payout ratio was 137.44%. Note that I am an affiliate of Sure Dividend. Stock Rover – Investment Research Platform Review, Simply Investing Newsletter and Course Review. I also note the net profit margin and operating profit margin, over the last 10 years to ensure they are at least maintaining their margins. They deliver more ground packages in the U.S. than any other carrier, with an average daily package volume of 15 million, most within one to three business days. These would be warnings signs to me that the dividend may not always be safe in the future. This is a guest post from Derek of the Engineer My Freedom blog. If you need verified experts to answer your tax and finance questions then I suggest connecting to Just Answer. I hope you enjoyed my review of UPS and if you would like to reach out, I can be contacted on twitter, Facebook or by email on the contact page of my website. For nearly 50 years, UPS … This quantitatively ranks UPS as a 0-Star Avoid stock. Since 2010 UPS has reduced its share count from 989 million to under 860 million. Outsourcing non-core logistics activity is a strategy more companies are pursuing. This is a win-win for investors as they generate regular dividend income while seeing the value of their shares increase. 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