We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UPS Enhances Shareholders' Returns With 5.5% Dividend Hike
Read MoreHide Full Article
In a shareholder-friendly measure, United Parcel Service, Inc. (UPS - Free Report) recently announced a hike in its dividend payout. The move indicates the company’s sound financial position and its intention to utilize free cash for enhancing shareholders’ returns.
The company has raised its quarterly dividend by 5.5% to 96 cents per share ($3.84 annually). This new dividend, approved by the company’s board of directors, will be paid on Mar 12, 2019 to stockholders of record as of Feb 26. The dividend yield based on this latest payout and the Feb 15 closing market price is approximately 3.5%.
This Zacks Rank #3 (Hold) company has a consistent track record of increasing dividends. Apart from the latest hike, last February, the company upped its dividend by 10%. Additionally, the company is active on the buyback front. In 2018, it bought back 8.9 million shares for $1 billion. Also, it paid approximately $3.2 billion as dividend to shareholders in the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the wake of the Tax Cuts and Jobs Act of 2017, dividend hikes have become a common phenomenon in the Transportation sector. Notable players like Union Pacific Corporation (UNP - Free Report) , GATX Corporation (GATX - Free Report) and Alaska Air Group (ALK - Free Report) have also rewarded shareholders with dividend hikes. The reduced tax rates from the current law lead to huge tax savings, which in turn, boost cash flow. With a solid cash flow, companies are frequently engaging in shareholder-friendly activities among other things.
As investors prefer an income-generating stock, a high dividend-yielding one is much coveted. Needless to say that investors are always on the lookout for companies, which boast an impressive history of regular and incremental dividend payments.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
UPS Enhances Shareholders' Returns With 5.5% Dividend Hike
In a shareholder-friendly measure, United Parcel Service, Inc. (UPS - Free Report) recently announced a hike in its dividend payout. The move indicates the company’s sound financial position and its intention to utilize free cash for enhancing shareholders’ returns.
The company has raised its quarterly dividend by 5.5% to 96 cents per share ($3.84 annually). This new dividend, approved by the company’s board of directors, will be paid on Mar 12, 2019 to stockholders of record as of Feb 26. The dividend yield based on this latest payout and the Feb 15 closing market price is approximately 3.5%.
This Zacks Rank #3 (Hold) company has a consistent track record of increasing dividends. Apart from the latest hike, last February, the company upped its dividend by 10%. Additionally, the company is active on the buyback front. In 2018, it bought back 8.9 million shares for $1 billion. Also, it paid approximately $3.2 billion as dividend to shareholders in the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Parcel Service, Inc. Price
United Parcel Service, Inc. Price | United Parcel Service, Inc. Quote
In the wake of the Tax Cuts and Jobs Act of 2017, dividend hikes have become a common phenomenon in the Transportation sector. Notable players like Union Pacific Corporation (UNP - Free Report) , GATX Corporation (GATX - Free Report) and Alaska Air Group (ALK - Free Report) have also rewarded shareholders with dividend hikes. The reduced tax rates from the current law lead to huge tax savings, which in turn, boost cash flow. With a solid cash flow, companies are frequently engaging in shareholder-friendly activities among other things.
As investors prefer an income-generating stock, a high dividend-yielding one is much coveted. Needless to say that investors are always on the lookout for companies, which boast an impressive history of regular and incremental dividend payments.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>