Analysis – United Parcel Service, Inc. Increases Dividend by 7%

UPS

United Parcel Service Incorporated announced a regular quarterly dividend of $0.78, a 7 percent increase from the prior rate of $0.73 per share. The dividend will be paid at the new higher rate on March 9, 2016, to shareholders of record at close of business on February 22, 2016. United Parcel Service, Inc. is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
2/22/2016 0.78
11/12/2015 0.73
8/13/2015 0.73
5/14/2015 0.73
2/19/2015 0.73
11/13/2014 0.67
8/14/2014 0.67
5/15/2014 0.67
2/20/2014 0.67
11/14/2013 0.62
8/15/2013 0.62
5/9/2013 0.62
2/21/2013 0.62
11/15/2012 0.57
8/16/2012 0.57
5/10/2012 0.57
2/16/2012 0.57
11/9/2011 0.52
8/18/2011 0.52
5/12/2011 0.52
2/10/2011 0.52
11/10/2010 0.47
8/12/2010 0.47
5/13/2010 0.47
2/11/2010 0.47

Analysis of Valuation of United Parcel Service Inc. (Symbol UPS).

UPS is trading above its average price/sale (P/S) range.  UPS is trading above its average historical dividend yield. 

Price 2/11/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$95.09 3.06% 6.5% 70.6 1.55 0.83 2.75 3.23% 2.37%

United Parcel Service, Inc. Dividend Yield Chart (Click to enlarge) UPS3

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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