UPS Raises Dividend Payout 8.8%; Increases Share Repurchase Authorization (UPS)

UPS Raises Dividend Payout 8.8%; Increases Share Repurchase Authorization (UPS)

RSS

Shipping company, United Parcel Service, Inc.(UPS) reported on Thursday that it has increased dividends and raised authorization on its share repurchase plan.

The company reported that it has increased its dividends by 8.8% from 57 cents to 62 cents per share quarterly, which will equal $2.48 annually. This dividend will be payable on March 12 to shareholders of record on February 15. The stock has an ex-dividend date of February 21.

UPS’s CEO Scott Davis commented, “this dividend increase reflects the power of the UPS business model to deliver consistent returns to shareowners. During 2012 we generated almost $5.4 billion in free cash flow, enabling reinvestment for growth and greater shareowner distributions, which are a top priority at UPS.”

Additionally, the company has announced that it has raised its share repurchase authorization to $10 billion. This plan has no expiration date and will replace the plan put into place in 2012. UPS reported on January 31 that it had increased its repurchase plan from $1.5 billion to $4 billion.

United Parcel Service shares were mostly flat during premarket trading Friday. The stock has increased 7.8% in the past year.

The Bottom Line
Shares of United Parcel Service, Inc.(UPS) will now have a 3.00% yield, based on the higher dividend payout and Thursday’s closing price of $82.69.

United Parcel Service, Inc.(UPS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today