United Parcel Service: A Dividend Growth Stock Expanding Its Services And Image

Discussion in 'The Latest UPS Headlines' started by cheryl, Apr 6, 2015.

  1. cheryl

    cheryl I started this. Staff Member

    United Parcel Service: A Dividend Growth Stock Expanding Its Services And Image - Seeking Alpha

    Summary
    • UPS's strategy to better accommodate its peak holiday deliveries caused it to overspend on holiday delivery preparations.
    • The company is working to address its past holiday delivery missteps by balancing cost efficiency with meeting peak package volume during its busiest delivery dates.
    • To help align costs, the company will expand capacity at shipping hubs in key areas to reduce the need for temporary workers and training costs.
    • UPS is also focusing on more profitable markets, such as the healthcare market, where a shipment must arrive expeditiously and at an appropriate temperature.
    • As the company resolves its past missteps and expands into more profitable markets, shareholders will be rewarded with a substantial dividend and share buybacks.