Can UPS Continue to Deliver Its 4.2% Yield?

By Marc Lichtenfeld UPS (NYSE: UPS) has delivered dividends consistently for decades. Except for 2009, when it kept the dividend steady, UPS has lifted the payout to shareholders every year since 1999 – and that includes a 5% increase in February.
But can the package delivery company continue to pay the current quarterly dividend of $1.01 per share?
The numbers say it can’t.
Free cash flow has been inconsistent over the past few years, turning negative in 2017 and dropping precipitously last year.

Both one- and three-year cash flow growth are negative. This year’s projected free cash flow growth is barely above 2016’s.
However, business will certainly be …read more

Source::

      

Did you enjoy this article? Join our FREE Newsletter!
I agree to have my personal information transfered to MailChimp ( more information )
Join over 100,000 investors and business leaders worldwide. Get the latest actionable business and investing intelligence before the rest of the crowd.
We hate spam. Your email address will not be sold or shared with anyone else.