UPS raises dividend 50%

I have to say this was unexpected! But the CEO’s comments affirmed the commitment to the dividend as a priority. I had this stock, but sold not long ago with a 100% gain. I still feel greedy that I missed out on the huge run up today! Oh well, whoever bought my shares is happy.

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I’ve held UPS as a services industry dividend stock with a history of modest dividend growth. UPS has historically covered it’s dividend well with operational casl flow. The reason UPS has been a slowly growing dividend is, I believe, uncertainty around shipping company market share, particularly with Amazon getting into the business. But the past 4Q show UPS has great operational cash flows, only 23% of which was paid out as a dividend in 4Q21. And I don’t think this is a ‘special’ one-time dividend, I think this is a permanent increase that is well covered.



I think you are right Bruce, too bad I didn’t keep holding as well! I agree this isn’t presented as a special dividend, rather an increase on which they intend to build. Congratulations on holding!

Only to be outdone by Tractor Supply which just announced a 77% increase in its dividend. The yield is still relatively low only because the price has risen so much over the last year. This is an interesting company with a history of solid success over almost three decades. There still appears to be substantial room for growth over the coming decades.