UPS To Increase Its Dividend By 10% And Reduce Its Shares By 5%

Discussion in 'The Latest UPS Headlines' started by cheryl, Feb 4, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    UPS To Increase Its Dividend By 10% And Reduce Its Shares By 5% - Seeking Alpha

    UPS is going to repurchase $4 billion of its shares which is 5% of its current market cap.
    Management expects $4.80 to $5.06 EPS for 2013 (including the buyback effect) and expects FCF to be above 100% of EPS.
    UPS has an almost unbreakable tradition of increasing its dividend every year both in absolute and per-share terms.
    UPS's average annual dividend payments increase is 10%.
    UPS has a lot of years of growth ahead.

    My take from all of this, is that UPS will increase its dividend by 10% to $2.50 when its management re-evaluates its dividend policy in a few weeks. That's a forward dividend yield of 3.125% at UPS's current stock price.