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.
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.
