4 Billion More Reasons to Like United Parcel Service, Inc. (UPS) - Insider Monkey
There's at least one silver lining for United Parcel Service, Inc. (NYSE:UPS) shareholders who are understandably miffed about the company's failed bid to acquire TNT Express. Thanks to the canceled deal, UPS now finds itself flush with cash. And it plans to pour billions of that treasure into share buybacks in 2013.
With major acquisitions off the table, shareholders can look forward to owning a greater piece of those solid business results as UPS draws down its pool of outstanding shares. And dividends will keep flowing as well. Shares yield close to 3% right now, on a high, but supportable, payout ratio of 64%.
UPS' management might not be happy about missing out on the TNT Express deal. But as far as second-best options go, shareholders have plenty of reasons to be pleased.
There's at least one silver lining for United Parcel Service, Inc. (NYSE:UPS) shareholders who are understandably miffed about the company's failed bid to acquire TNT Express. Thanks to the canceled deal, UPS now finds itself flush with cash. And it plans to pour billions of that treasure into share buybacks in 2013.
With major acquisitions off the table, shareholders can look forward to owning a greater piece of those solid business results as UPS draws down its pool of outstanding shares. And dividends will keep flowing as well. Shares yield close to 3% right now, on a high, but supportable, payout ratio of 64%.
UPS' management might not be happy about missing out on the TNT Express deal. But as far as second-best options go, shareholders have plenty of reasons to be pleased.
