moved Thursday to address its "problem" --
-- by raising its dividend.
The company said it would increase the quarterly dividend to 47 cents from 45 cents, payable March 3 to shareholders of record on Feb. 16.
The company on Tuesday guided toward earnings of $2.70 to $3.05 a share in the current year. Analysts surveyed by Thomson Reuters had been estimating $2.81. On an earnings conference call, CFO Kurt Kuehn said the guidance was "aggressive," but justified by increasing revenue and declines in projecting spending.
"We are going to be back soon hopefully to that problem of what to do with excess cash generation," Kuehn said. "We have no intentions of building a large hoard of cash."
The dividend increase was not exactly a surprise. UPS company has either increased or maintained its dividend every year for four decades.
-- Written by Ted Reed in Charlotte, N.C.