Does anyone purchase the UPS stock at a discount?

Discussion in 'UPS Discussions' started by Followthemethods, Jun 13, 2014.

  1. Followthemethods

    Followthemethods New Member

    I am thinking of investing about 10,000 in the discounted employee stock option. I figure with the 5% discount I am already making money. I will talk to my financial planner but wanted to hear from my UPS brother and sisters also. Thanks!

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  2. Indecisi0n

    Indecisi0n Well-Known Member

    [​IMG]
     
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The Computershare Direct Investment and Dividend Reinvestment Plan enables UPS Class B common shareowners to purchase additional Class B common shares and/or to reinvest dividends paid on shares of UPS Class B stock in additional UPS Class B common shares. Current UPS Class B common stock shareowners can enroll in the plan online by accessing your account at www.cpushareownerservices.com or calling toll-free 800-758-4674.
     
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  4. superballs63

    superballs63 Well-Known Troll Troll

    I'm not sure I would throw 10G's all at the UPS stock (spread the wealth). However, if it is something you're seriously considering, you should watch the stock price for a few weeks, and when you see it dip low, that's when you want to buy.

    I had considered it, but have decided against it for now since my 401K is doing pretty darn good.
     
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  5. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    5% of $10K is only $500.

    UPS B is trading for about $100/share so your $10K would get you about 100 shares. The dividend for one share of stock is $.67 so you would earn enough to buy 2/3 of a share.

    Superballs is right----there are many other more appealing options out there to invest your largesse. Apple just did a 7 for 1 split, reducing their stock price to just below $100/share.

    If it were me I would set up an appointment with a financial adviser.
     
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  6. upschuck

    upschuck Avatar bet gone wrong

    IMHO, I would put it in a Roth IRA, unless you are buying it for a shorter term investment. That way, all dividends and growth are tax free, making up that 5% rather quickly. Depends on your reasons for investing.
     
  7. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    You could put the $10k in an outside money-market fund putting $5500 in a Roth IRA and then dollar cost average into the market over a year period if you like or take the big plunge. I personally tried to dollar cost average into the market.
    There are a large number of stocks out there providing a better dividend yield than UPS.
    Most advisors (as opposed to salesmen/brokers) would encourage you to dollar cost into the market using the many Index funds available.
     
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  8. bluebiker

    bluebiker Member

    If you buy UPS stock at the 5% discount when you sell you have to declare 5% of the selling price as ordinary income. Also you can't sell for 2yrs unless it's a hardship. Like others have said 5% isn't really a bargain.

    Also putting all your eggs in one basket isn't good stock advice. If you want to gamble with $10K go to Motley Fool dot.com and see some other options that have done better than 5% and anything held for (I think) longer than 6 months is considered a long term capital gain which is at a reduced tax rate.
     
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  9. brownrod

    brownrod Active Member

    I have bought through the DESPP in the past. However, I believe UPS is overvalued at the moment so I am not purchasing stock. I am however reinvesting all dividends in the stock.

    But I am very biased. As a UPS driver my perspective is that this money pisses away money on worthless software and does nothing to actually make me a more productive employee except harass me to reduce my overallowed by skipping breaks and working off the clock.
     
    Last edited: Jun 13, 2014
  10. Tough Guy

    Tough Guy Active Member

    I set mine up so 10 bucks goes towards the despp, and 6% to my 401k. I figure each year I get a raise and eventually top rate, I'll increase the deduction each year. The 10 bucks may not be much but it's my hope that by the end of my career I'll have accrued a wealth if stocks and therefore a nice chunk of change.
     
  11. Buy Apple stock


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  12. bleedinbrown58

    bleedinbrown58 ahhh....the mouth breathers

    I haven't yet but I think it's a good idea. I have to consult with my financial advisor first ;)
     
  13. oldngray

    oldngray nowhere special

    Your financial advisor?
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  14. Jackburton

    Jackburton Gone Fish'n

    Buying stock is a place you work for is generally a bad idea. If you lose your job to say a layoff or the company is doing poorly, not only does your job suffer, but your stocks. Being required to hold your ESPP shares for 2 years isn't worth it as well, that's 8 earnings releases, a lot can happen in that amount of time and your hands are tied.
     
  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I am intrigued by Apple. I have several financial people on my area and I briefly spoke to one about the stock split and if the share price may drop. He personally likes the split and thinks the stock may dip to $85 before making it's way back up.
     
  16. oldngray

    oldngray nowhere special

    Apple will always have fanboys so will trend upwards (for near future anyway).
     
  17. bleedinbrown58

    bleedinbrown58 ahhh....the mouth breathers

    Lol kinda look like him...a little too much pink!
     
  18. Followthemethods

    Followthemethods New Member

    Thanks for the info guys! I talked to my financial advisor today and he said there are better options out there. I can't but it in a Roth because I already contribute the max to that from a 401k my dad had.

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  19. What'dyabringmetoday???

    What'dyabringmetoday??? Well-Known Member

    I think you should set up an appointment with an advisor Skippy.
     
  20. I went home from work early tonight and spent 50 on some dinner with the family. I had a good time and so did they. I feel like I got a real good return on my investment already. They are all so healthy as am I.
     
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