United Parcel Service (UPS) Declares 67c Quarterly Dividend

NEW YORK (TheStreet) -- United Parcel Service (UPS) declared a quarterly dividend of 67 cents a share Friday.

Shares of UPS gained 0.8% to $99.76.

The quarterly dividend is in-line with the company's previous. The dividend is payable on June 4 to all shareholders of record as of the close of business May 19. The ex-dividend date is set for May 15.

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TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $2,266.00 million or 28.89% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.84%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • UNITED PARCEL SERVICE INC's earnings per share declined by 9.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED PARCEL SERVICE INC increased its bottom line by earning $4.62 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($5.08 versus $4.62).
  • The gross profit margin for UNITED PARCEL SERVICE INC is currently extremely low, coming in at 10.98%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 6.61% is above that of the industry average.
  • You can view the full analysis from the report here: UPS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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