United Parcel Service (NYSE:UPS) has recently declared its quarterly dividends of $1.62 per share for Class A and B shareholders, leading to a 1.6% surge in its share price ahead of the ex-dividend date on November 13. This announcement comes despite a significant revenue decline in the company's Q3 earnings report.
The logistics giant exceeded analysts' estimates for adjusted profit and demonstrated a robust free cash flow of $4.9 billion. Consequently, the dividend yield stood at 4.6%. UPS has maintained a track record of annual dividend increases, with a notable 60% rise since 2020.
Meanwhile, Eric Volkman and the Motley Fool Stock Advisor have suggested that there are 10 other stocks that may present better investment opportunities. Despite this, UPS's recent performance and dividend announcement indicate a continued commitment to shareholder returns amidst challenging market conditions.
InvestingPro Insights
InvestingPro's real-time data reveals UPS's market capitalization to be $120.96 billion, with a P/E ratio of 14.12 as of Q3 2023. The company's revenue stands at $93.07 billion, despite experiencing a decline of 7.92% over the last twelve months as of Q3 2023. Additionally, the dividend yield is reported at 4.56%.
InvestingPro Tips highlight that UPS has a history of high returns on invested capital, and has raised its dividend for 14 consecutive years - a testament to its commitment to shareholder returns. It is also noted that UPS is a prominent player in the Air Freight & Logistics industry. However, analysts anticipate a sales decline in the current year, and the stock is currently trading near its 52-week low.
For more detailed insights and a comprehensive list of 16 additional InvestingPro Tips, consider exploring InvestingPro's product offerings. These tools can provide a deeper understanding of UPS's financial health and market position, aiding in informed investment decisions.
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