United Parcel Service, Inc. (NYSE:UPS) Increases Dividend to $1.64 Per Share

United Parcel Service, Inc. (NYSE:UPS) declared a quarterly dividend on Wednesday, February 5th,RTT News reports. Stockholders of record on Tuesday, February 18th will be paid a dividend of 1.64 per share by the transportation company on Thursday, March 6th. This represents a $6.56 annualized dividend and a dividend yield of 5.86%. This is a positive change from United Parcel Service’s previous quarterly dividend of $1.63.

United Parcel Service has increased its dividend payment by an average of 16.9% annually over the last three years and has increased its dividend every year for the last 15 years. United Parcel Service has a dividend payout ratio of 65.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect United Parcel Service to earn $9.34 per share next year, which means the company should continue to be able to cover its $6.52 annual dividend with an expected future payout ratio of 69.8%.

United Parcel Service Stock Performance

United Parcel Service stock traded up $0.18 during midday trading on Wednesday, hitting $111.95. 7,117,631 shares of the company were exchanged, compared to its average volume of 7,172,173. The business has a fifty day simple moving average of $127.32 and a two-hundred day simple moving average of $129.69. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.14 and a current ratio of 1.17. The firm has a market capitalization of $95.54 billion, a PE ratio of 16.56, a price-to-earnings-growth ratio of 1.63 and a beta of 0.98. United Parcel Service has a fifty-two week low of $109.40 and a fifty-two week high of $158.95.

United Parcel Service (NYSE:UPS) last posted its earnings results on Thursday, January 30th. The transportation company reported $2.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.52 by $0.23. United Parcel Service had a net margin of 6.35% and a return on equity of 39.13%. During the same quarter last year, the company posted $2.47 EPS. On average, sell-side analysts forecast that United Parcel Service will post 8.61 earnings per share for the current year.

Insider Transactions at United Parcel Service

In other news, insider Norman M. Brothers, Jr. sold 7,325 shares of the stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $138.57, for a total value of $1,015,025.25. Following the completion of the sale, the insider now directly owns 45,098 shares of the company’s stock, valued at approximately $6,249,229.86. This represents a 13.97 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.13% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. StockNews.com raised shares of United Parcel Service from a “hold” rating to a “buy” rating in a report on Wednesday, November 6th. UBS Group lowered their price objective on United Parcel Service from $170.00 to $141.00 and set a “buy” rating on the stock in a report on Friday, January 31st. JPMorgan Chase & Co. reduced their target price on United Parcel Service from $135.00 to $120.00 and set a “neutral” rating for the company in a report on Friday, January 31st. Susquehanna lowered their price target on United Parcel Service from $140.00 to $130.00 and set a “neutral” rating on the stock in a research note on Friday, January 31st. Finally, Stifel Nicolaus decreased their price objective on United Parcel Service from $156.00 to $153.00 and set a “buy” rating on the stock in a report on Thursday, January 23rd. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $140.73.

United Parcel Service Company Profile

United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.