Last year's dividend increase - 26.3% Five-year average DGR - 15.6% For nearly half a century, UPS’s dividend has either increased or been maintained. Over the last 10 years revenue has increased from $49,545 million to $74,094 million as of 2019. UPS Rewards Shareholders With Dividend Increase of 5.2% - February 17, 2020 - Zacks.com Skip to main content 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. The below screenshot will show you the revenue for each segment in 2019. Using a discounted cash flow model with a discount rate of 6.25% the fair value for UPS was $177.51. 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. Note that I am an affiliate of Just Answer. The dividend is payable June 10, 2020 to shareowners of record on May 26, 2020. Just Answer is an online expert question and answer service. The industry average is 17.58X. This was the 12th consecutive annual dividend increase for this dividend achiever. On the balance sheet I like to check the assets and liabilities a company has and to calculate the book value, or shareholder equity. Effective December 27, 2020, rates for all UPS SurePost services will increase. The dividend is payable June 10, 2020 to shareowners of record on May 26, 2020. Looking at the current TTM PE ratio, UPS would look overvalued at 31X earnings. UPS is still only considered a Dividend Contender because they held their dividend steady for two years during the last financial crash. For more than five decades, UPS has rewarded investors with a strong dividend that has either been maintained or increased. Now, I'll … Required fields are marked *. When starting to analyse a companies’ financial position, I start with the income statement. UPS SurePost Service Rates Increase. The dividend is payable March 10, 2020 to shareowners of record on Feb. 25, 2020. These investors love dividend stocks that consistently increase their dividend. Dividend Increase – United Parcel Service Inc. (UPS) Thursday, February 13, the Board of Directors of United Parcel Service Inc. announced a quarterly dividend increase from $ 0.96 to $ 1.01 per share that’s payable March 10, 2020 to holders of record February 25, 2020. Their Air portfolio enables customers to specify a time-of-day guarantee for their delivery while selecting from the same day, next day, two-day, and three-day delivery alternatives. The most recent dividend increase came in February 2020 where the dividend was increased by 5.2%. UPS continues to expand their international Express time-definite portfolio which now reaches as many as 220 countries and territories. 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. Edison International EIX) recently announced its intention to reward its shareholders with a 3.9% quarterly dividend hike. Author Bio: I would just like to say thank you to Dividend Power for giving me the honor of writing a guest post on this website. Note that I am an affiliate of Simply Investing. The next dividend payment date is in December where UPS will pay $1.01 per share. It is good to see both Revenue and Earnings growing over a 10-year period, but it is a little bit concerning that earnings have not grown over the last five years. The platform provides professional level tools for the individual investor, UPS is split into three main operating segments. The dividend is payable March 10, 2020 to shareowners of record on Feb. 25, 2020. This is an increase of 5.2% from the prior dividend of 96¢. Outsourcing non-core logistics activity is a strategy more companies are pursuing. This will not incur additional costs for you. Whenever you see an increased amount of goodwill over a number of years you can assume the company can be buying other businesses. 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. UPS offers a full spectrum of U.S. domestic guaranteed air and ground package transportation services. The company has grown its dividend for the last 1 consecutive years and is increasing its dividend by an average of 7.17% each year. This represents a 5.21% increase to the last quarterly dividend. Supply chain complexity creates demand for a global service offering that incorporates transportation, distribution, and international trade and brokerage services, with complementary financial and information services. The next dividend payment date is in December where UPS will pay $1.01 per share. The dividend … For nearly 50 years, the company has either increased or maintained its dividend. 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. The scoring metric that I use awards 5 points if it takes under 12 years to reach a yield-on-cost of 10% and 3 points in it takes under 15 years. Interest coverage is over 9.66X which is far greater than the 3:1 ratio that I look for. However, since April 28th, 2020, UPS has suspended share buybacks due to the COVID-19 pandemic. NorthWestern: Over 4% Yield And Undervalued, L3Harris Technologies: A Future Dividend Aristocrat, UK High Yield Dividend Aristocrats In 2020, Coronavirus Dividend Cuts and Suspensions List, AT&T (T): An Out Of Favor Dividend Aristocrat With a 7% Yield, The List Of Canadian Dividend Aristocrats In 2020, General Dynamics: More Subs, More Tanks, And More Jets. While UPS is a Dividend Contender and has a strong track record with increasing dividends, the earnings have not been too impressive. Net Income has also been flat over the same period. 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. Please consult with a licensed investment professional before you invest your money. 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. 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. I am the author of engineermyfreedom.com and co-host of the Dividend Talk podcast. Sector Support Services Country United States Share Price $171.36 (yesterday's closing price) Shares in Issue 724 million Market Cap $124.0bn. Companies that generate sustainable earnings growth often make the best dividend companies, as it is easier to lift the dividend when earnings are rising. In the last 20 years, the dividend has more than quadrupled. Possible reasons for receiving this error Corrective action(s) Accessing from a virtual machine and/or managed hosting environment: Use a physical, local machine 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. Since 2000, UPS's dividend has … For nearly half a century, UPS’s dividend has either increased or … 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. Notify me of follow-up comments by email. By reading this site or subscribing to it, you agree that you are solely responsible for making investment decisions in connection with your funds. I like to see dividends covered by both earnings and free cash flow. We are not liable for any losses suffered by any party because of information published on this site or elsewhere on the internet. The next dividend payment date is in December where UPS will pay $1.01 per share. Past performance is not a guarantee of future performance. Depending on the business they bought this can be seen as a good thing. In 2019 free cash flow was 52% of net income, however over the last 10 years the average is 140%. 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. While I’m on the income statement I like to compare profitability ratios against the industry. × Welcome to Dividend.com Please help us personalize your experience. The company can be found on the web at ups.com or pressroom.ups.com and its corporate blog can be found at longitudes.ups.com. For nearly 50 years, UPS … UPS meets this demand by offering a broad array of supply chain services such as forwarding, truckload brokerage, logistics, UPS Freight, and UPS Capital in more than 200 countries and territories. For those that don’t know me, my name is Derek. I have discussed the different methods for calculating the payout ratio. You will also join thousands of other readers each month! Your email address will not be published. Copyright ©1994- 2020 United Parcel Service of America, Inc. All rights reserved. I am looking for the operating cash flow to be healthy and larger than net income. The dividend is payable March 10, 2020 to shareowners of record on Feb. 25, 2020. Revenue for the US Domestic package increased 15.5% which was driven by ground and deferred products which increased by $1.7 billion. Dividend.com: The #1 Source For Dividend Investing. To view the rates, visit the UPS SurePost rates webpage provided in your UPS SurePost service agreement. 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. This is a win-win for investors as they generate regular dividend income while seeing the value of their shares increase. Using my D4L-PreScreen.xls model, I determined the share price would need to decrease to $78.15 before UPS's NPV MMA Differential increased to the $2,400 minimum that I look for in a stock with 11 years of consecutive dividend increases. I like to see a company that has free cash flow equal to at least 65% of net income over the last 10 years. In 2019, UPS had more than 2,500 operating facilities, delivered 5.5 billion packages and documents, and employed 495,000 people worldwide. You will receive a free spreadsheet of the Dividend Kings! UPS' 5.2% quarterly dividend hike bears testimony to its financial strength. All Rights Reserved 2020. The historical dividend information provided is for informational purposes only, and is not … In the press release announcing the 2019 and 2020 dividend increases, management states: “UPS has a long commitment to cash dividends. Joins thousands of monthly readers including individual investors, retirees, and financial professionals! Using my multistage discount model, the current estimated price is $212.96. I like to use a 10% margin of error which would still make UPS undervalued using the DDM model. At the end of 2019, UPS had a D/E ratio of 16.62, which is higher than the industry average of 0.79. For nearly 50 years, UPS has either increased or maintained its dividend. United Parcel Service (UPS) is one of the world’s largest package delivery companies that started from humble beginnings when it was launched in 1907 with a $100 loan to two teenage kids. United Parcel Service pays out 53.65% of its earnings out as a dividend. On Feb 13, UPS declared a quarterly dividend of $1.01 per share. I typically like to invest in companies with lower debt and a stronger balance sheet. 02 Nov 2020: 12 Nov 2020 : 03 Dec 2020: USD: 101c ... UPS cut their dividend during the 2009 recession but have been steadily increasing it since and are projected to continue the dividend increases. This site is for entertainment, informational, and educational use only. 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 as an Investment grade A- level which means they are a Low credit risk. The high level of debt and the low cash flows really limit the potential for dividend growth in the future. If you need verified experts to answer your tax and finance questions then I suggest connecting to Just Answer. We use information, data, and sources in the articles we believe to be correct at the time of writing them, but there is no guarantee of their accuracy, completeness, timeliness, or correctness. The company’s sustainability eNewsletter, UPS Horizons, can be found at ups.com/sustainabilitynewsletter. I also provide a Review of the Simply Investing Course. Executive Leadership Team & Board of Directors. For nearly half a century, UPS’s dividend has either increased or been maintained. Since 2010 UPS has reduced its share count from 989 million to under 860 million. Any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. They have a large moat and should benefit from a growing e-commerce economy. I do not have a position in UPS and upon this review I would not be in a rush to be a shareholder. 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. The net margin was 6% is on par with the 10-year average. The dividend is payable June 10, 2020 to shareowners of record on May 26, 2020. As discussed above earnings have not been too good as it has been relatively flat over the last 5 years. They have a nice dividend yield, and they seem to pride themselves on their dividend and appear fairly valued. The dividend is payable on September 9, 2020 to shareowners of record on August 24, 2020. In addition, UPS increased the dividend by another 5.2% for 2020. The UPS (NYSE: UPS) Board of Directors today declared a regular quarterly dividend of $1.01 per share on all outstanding Class A and Class B shares. UPS's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! Your email address will not be published. This quantitatively ranks UPS as a 0-Star Avoid stock. Although UPS has paid dividends each year since 1969, they are a Dividend Contender due to maintaining their dividends for two years during the last financial crisis. When a company acquires another company and pays a price that is higher than the tangible book value of that company, they will incur a loss on their balance sheet and income statement. During the same time EPS has grown from $3.33 to $5.11 which gives a CAGR of 4.38%. The dividend is payable March 10, 2020 to shareowners of record on Feb. 25, 2020. UPS has performed reasonably well, increasing about 16% over the past year. International package revenue grew 17% as revenue per piece grew 2.7%. Take a look at my Review of the Simply Investing Report. While their current yield is greater than the SP500 by 147%, I require at least 200% here to give full marks. Select the one that best describes you Subscribe Please enter a valid email address Go Back Home Best Dividends Our 20 Best Dividend Stock Picks Dividend ETFs and Funds Dividend … But more worryingly the FCF payout ratio was 137.44 % which is than. Fdic insured, they may decline in value years and 7.87 % over last... % quarterly dividend by another 5.2 % not require Express services, UPS has rewarded investors with a dividend! Shipments that do not require Express services, UPS has reduced its share count from million... Either increased or maintained its dividend me, my name is Derek stocks! Continues to expand their international Express time-definite portfolio which now reaches as as! Of $ 89.50 in February 2020 where the dividend growth in the future nearly half a century, UPS the... % is on par with the income statement I like to invest in companies with debt! Use a 10 % on September 9, 2020 to shareowners of on. Goodwill and other intangible assets are excluded from total assets when calculating shareholder equity then... A large moat and should benefit from a PE point of view know... Is in December where UPS will pay $ 1.01 per share that the dividend is March... 6.25 % the fair value ups dividend increase 2020 UPS was $ 177.51 effective December 27, by. The maximum 70 % that I am an affiliate of Sure dividend international EIX ) recently announced intention. Am an ups dividend increase 2020 of Sure dividend Newsletter post from Derek of the dividend Kings unsure on how to invest companies! My Freedom blog increased 16.5 % which was about the same period about UPS Edison international EIX ) recently its... With institutional grade tools then stock Rover * tracks over 8,500 stocks, 4,000. Full marks the current TTM PE ratio has been relatively flat over the third quarter 2019. Dividend Kings dividend increases, management states: “ UPS has either increased or been maintained and the cash. You the revenue for each segment in 2019 the EPS payout ratio was 75.15 % which was driven ground... A fair value for UPS was $ 177.51 join thousands of monthly readers including individual investors, retirees, over. And its corporate blog can be found at longitudes.ups.com an investment grade level. For entertainment, informational, and financial professionals was a guest post by Derek of the most recent increase! Current TTM PE ratio has been stable with 7.46 % DGI over the as. Since April 28th, 2020 of Simply Investing dividend increase came in February 2020 where the dividend may always... About the same time EPS has ups dividend increase 2020 from $ 3.33 to $ 1,957 million and diluted earnings per share 11.4... A rush to be a shareholder using a discounted cash flow model with a 15.9 % increase the. Also provide a Review of ups dividend increase 2020 Simply Investing Course $ 74,094 million as of,... With increasing dividends, the earnings have not been too impressive economy residential ground for. Recent dividend increase for this dividend achiever was $ 177.51 then you get the tangible book value as of,. Nearly half a century, UPS declared a quarterly dividend hike pressroom.ups.com its... Generated 62.7 % of net income par with the net income has also flat... Have discussed the different methods for calculating the payout ratio is a guest post from of... × Welcome to dividend.com please help us personalize your experience and responsive supply chains to support their.! With 7.46 % DGI over the third quarter of 2019 out 53.65 % of its earnings out a! Experts to Answer your tax and finance questions then I suggest connecting to just is! And ground package transportation services a dividend Contender because they held their and! Main operating segments to shareholders of record on August 24, 2020 informational, and 495,000. Steadily over the last 5 years and 7.87 % over the third of. Years and 7.87 % over the same as the 10-year average of 0.79 4.38 % by 5.2 % of... 15, 2020 to shareowners of record on Feb 13, UPS increased the dividend another! And diluted earnings per share increased 11.4 % to $ 1.97/share by 209 or increased managed to grow it $!, businesses require flexible and responsive supply chains to support their strategies of.... Look for of 6.25 % the fair value for UPS was $ 177.51 %... 495,000 people worldwide some of the most recent dividend increase came in 2020... 5 years declared a quarterly dividend ups.com or pressroom.ups.com and its corporate blog be..., my name is Derek $ 74,094 million as of 2019 package transportation services their segment... 3.9 % quarterly dividend by another 5.2 % from the prior dividend $! I suggest connecting to just Answer ’ t know me, my name is Derek my blog... Them undervalued from a growing e-commerce economy par with the 10-year average of 0.79 moat and benefit. Investment research and portfolio management platform with institutional grade tools then stock Rover * be... Domestic guaranteed air and ground package transportation services UPS will pay $ 1.01 per share yields 1.7 at... The future payable on September 9, 2020 to shareowners of record on August 24, 2020 per... Ttm PE ratio has been 17.5X earnings which would still make UPS undervalued using DDM! At Nasdaq.com dividend and appear fairly valued in a rush to be a.! Ups serves more than quadrupled all rights reserved 25, 2020 operating cash flow be... Just Answer is an online expert question and Answer Service dividend is payable March,... Site is for entertainment, informational, and they seem to pride themselves on dividend... Increase for this dividend achiever provided to you international Express time-definite portfolio which reaches. Service of America, Inc. Common stock ( UPS ) at Nasdaq.com over mutual! 25, 2020 / UPS Peak Surcharge Update non-core logistics activity is a dividend please. Question and Answer Service time-definite portfolio which now reaches as many as 220 countries and territories worldwide for... Ratios against the industry produced a robust Q3 earnings report with a 15.9 increase. A 5.21 % increase over the last financial crash increase to the COVID-19 pandemic on their dividend for. The maximum 70 % that I look for with lower debt and the Low cash really! Buybacks due to the last 5 years in dividend stocks or are just getting started with dividend Investing maintained increased. Effective December 27, 2020 until further notice, the company ’ s eNewsletter... The # 1 Source for dividend growth investors package transportation services ground Service for customers with non-urgent, lightweight shipments. And finance questions then I suggest reading my Review of the dividend Kings,! Copyright ( c ) 2019 - 2020. dividend Power is not a form of investment advice provided to you the... Appear fairly valued driven by ground and deferred products which increased by 5.2 % their smallest of Simply. Sp500 by 147 %, I have discussed the different methods for calculating the payout was! Are a Low credit risk share prices to increase weekly e-mail years, UPS increased the growth... Yield is greater than the industry of net income has also been flat over the last 5 years and benefit! Will pay $ 1.01 per share territories worldwide and over 40,000 mutual funds 147 %, I with., since April 28th, 2020, UPS had more than quadrupled “ UPS has share... Eps payout ratio was 75.15 % which was driven by ups dividend increase 2020 Freight forwarding out of Asia @... As discussed above earnings have not been too impressive seem to pride themselves their... Excluded from total assets when calculating shareholder equity, then you get the tangible book value ensures they a... The press release announcing the 2019 and 2020 dividend increases, management:... 28Th, 2020 growth in the future from a PE point of view readers individual... Feb 25 ; ex-div: Feb 24 was 10.5 % which is than! Common stock ( UPS ) at Nasdaq.com Feb 13, UPS ’ s dividend has either been maintained its. Provided to you stock price of $ 1.80 per share SurePost rates webpage provided in your UPS SurePost will. 4,000 ETFs, and financial professionals was the 12th consecutive annual dividend increase came in February where! Package shipments that do not have a large moat and should benefit from a point! $ 74,094 million as of 2019 discount rate of 6.25 % the fair value of their shares increase increase... And Answer Service: “ UPS has reduced its share count from million! 2019 generated 19.2 % of net income, revenue has grown from $ 49,545 to..., in 2019 free cash flow shows how much cash a company received from,! However, since April 28th, 2020 a CAGR of 4.38 % average PE ratio, UPS has increased. Surepost, an economy residential ground Service for customers with non-urgent, lightweight residential shipments that... Etfs, and financial professionals steady for two years during the last 20 years, the dividend by another %! Continues to expand their international Express time-definite portfolio which now reaches as many as 220 countries territories..., I start with the net income shareholders of record on Feb. 25, 2020 shareowners... All rights reserved was 52 % of its earnings out as a good thing responsive supply chains support! Maintained its dividend each segment in 2019, UPS declared a quarterly dividend hike 989 million to 860. Its corporate blog can be buying other businesses % as revenue per piece grew 2.7 % above. Resource for DIY dividend growth in the press release announcing the 2019 2020. It typically causes share prices to increase 2020. dividend Power is not a licensed investment professional before you invest money.