2024-03-22 10:15:00 ET
Summary
- Amid a turnaround, United Parcel Service announced a token dividend increase in January to extend its dividend growth streak to 15 years.
- The company's Q4 2023 results were mixed, with revenue slightly missing analysts' expectations and non-GAAP EPS surpassing expectations.
- Despite experiencing temporary operating issues, UPS was able to service its debt from earnings with ease in 2023.
- Shares of the logistics juggernaut could be trading at a 17% discount to fair value.
- UPS's outsized dividend yield and undervaluation could position it for strong returns in the years to come.
As a dividend growth investor, I highly value businesses that value their shareholders. What I mean is companies that are committed to returning capital to shareholders via share repurchases and dividends in both the good times and the bad times.
This is because both the willingness and ability to do this are a somewhat rare combination in investing. A company can try to deliver value to shareholders all it wants, but if the cash isn't there, that desire is all for nothing....
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United Parcel Service: Buy This Undervalued Income Pick Now