UPS: Highly-Profitable Market Leader With Strong Cash Flows - Seeking Alpha Over the years, UPS has parceled out brown boxes of free cash flow to shareholders via dividends and share buybacks. UPS increased its dividend 11% this year to an annual rate of $2.08 per share with the dividend currently yielding an attractive 3.4%. During the first half of 2011, UPS generated $2.4 billion in free cash flow even after making an accelerated pension contribution of $1.2 billion. UPS used its strong cash flow to return cash to shareholders through dividend payments of $1 billion and share repurchases of $1.1 billion at a cost of $76.39 per share. UPS will likely accelerate its share repurchase program in the second half of the year given attractive market opportunities.