In a shareholder-friendly measure, United Parcel Service (UPS - Free Report) announced a 5.2% raise in its dividend payout. This move is indicative of the company’s commitment to create value for its shareholders and also underlines its confidence in business growth.
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 first quarterly installment of the hiked dividend will be paid out on Mar 10, 2020 to its shareholders of record as of Feb 6. The dividend yield based on the new payout and Feb 14’s closing price is 3.8%.
Notably, this Zacks Rank #3 (Hold) stock has an impressive track record with respect to dividend payouts. It either upped or kept its dividend intact for nearly half a decade. In fact, the dividend payout of this package delivery company has more than quadrupled since 2000.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Transportation Stocks on a Dividend Hike Spree
Even though the current year is only in its second month, many players in the broader Transportation sector already hiked their respective quarterly dividend payouts, showing their shareholder-friendly stance.
For instance, the likes of Alaska Air Group (ALK - Free Report) , J.B. Hunt Transport (JBHT - Free Report) and GATX Corporation (GATX - Free Report) raised their dividend payouts. While Alaska Air Group announced a 7.1% hike in quarterly dividend to 37.5 cents per share, J.B. Hunt increased the same by 3.8% to 27 cents. Additionally, GATX declared a 4.3% rise in its quarterly dividend to 48 cents per share.
Investors always prefer an income-generating stock. Hence, a high dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a history of consistent and incremental dividend payments to invest in.
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