When it comes to capital gains and dividend growth,United
Parcel Service (
The stock is up 38% this year, easily outpacing the S&P
500's 25% gain. Meanwhile, the company early this year boosted
its quarterly dividend by almost 9% to 62 cents a share, or $2.48
on an annualized basis. The annualized dividend yield is 2.4%,
just shy of the S&P 500's 2.45%.
UPS' dividend has more than tripled since 2000, growing at a
compounded annual rate of 10.5%, according to UPS' website.
After stumbling during the recession, UPS' profit has picked
up for three straight years. Earnings this year are seen rising
5% to $4.76 a share, followed by a 15% increase in 2014.
The company's three-year Earnings Stability Factor is 5 on a
scale of 0 (most stable) to 99 (least stable).
UPS' growth is being driven by overseas expansion and the
increasing popularity of online shopping. Polling firm Nielsen
said last month that 46% of consumers planned to shop online this
holiday season, up from 30% in 2012. Overall spending is expected
to rise about 2%.
"The company strongly banks on the rapid growth in e-commerce
and expects prolonged holiday shopping for using gift cards,
sending return gifts and end-of-the-year sales to result in more
freight shipments," Zacks Equity Research said late last
UPS last week launched a free mobile app forAmazon.com (
) Kindle Fire tablets. It lets customers track packages, find UPS
stores and manage shipments through My Choice.
Meanwhile, UPS recently announced plans to expand in China
amid expectations of strong growth in emerging markets.
The stock may be headed for its second test of the 10-week
line since it cleared a 91.88 buy point in a cup-with-handle base
in September. That would put it in a secondary buying range.