3. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 58
Dividend Yield as of February 24: 5.65%
United Parcel Service, Inc. (NYSE:UPS) is an American shipping and supply chain management company, headquartered in Georgia. The company is focusing on growing its healthcare logistics services as part of its broader goal to become a global leader in the industry. In January 2025, it strengthened its capabilities by acquiring Frigo-Trans and its subsidiary BPL, reinforcing its capacity to provide advanced temperature-controlled logistics solutions, particularly across Europe.
In the fourth quarter of 2024, United Parcel Service, Inc. (NYSE:UPS) generated $25.3 billion in revenue, reflecting a 1.54% increase from the same period a year earlier. It has also reached a preliminary agreement with its largest customer to scale back volume by more than 50% by the second half of 2026. In addition, as of January 1, 2025, the company will take full control of its UPS SurePost product. In response to these shifts, it is restructuring its US network and implementing multi-year “efficiency reimagined” initiatives aimed at streamlining operations and achieving approximately $1.0 billion in cost savings through a comprehensive process overhaul.
United Parcel Service, Inc. (NYSE:UPS) recently increased its quarterly dividend by 0.6% in February to $1.64 per share, marking 23 consecutive years of dividend growth. This consistency places UPS among the best stocks to buy for passive income. As of February 24, the stock yields 5.65%. Beyond its steady dividend increases, the company remains attractive to income investors due to its strong cash flow. In fiscal 2024, UPS generated $10.1 billion in operating cash flow and $6.3 billion in free cash flow. Additionally, it returned $5.9 billion to shareholders through dividends and share buybacks.
