5 Best Stocks for Dividends

3. United Parcel Service, Inc. (NYSE:UPS)

Dividend Yield as of September 27: 3.76%

United Parcel Service, Inc. (NYSE:UPS) is a multinational shipping & receiving and supply chain management company. It is one of the most trusted shipping and logistics companies globally. The company is one of the best dividend stocks on our list as it maintains a 12-year streak of dividend growth. Moreover, it has raised its payouts at a CAGR of 11.28% in the past five years. The company currently pays a quarterly dividend of $1.52 per share for a yield of 3.76%, as of September 27.

In Q2 2022, United Parcel Service, Inc. (NYSE:UPS) reported revenue of $24.8 billion, which showed a 6% growth from the same period last year. Its operating cash flow and free cash flow fell in line with the prior-year quarter at $3.8 billion and $2.97 billion, respectively. For FY22, the company expects to pay approximately $5.2 billion in dividend payments.

In July, Evercore ISI initiated its coverage of United Parcel Service, Inc. (NYSE:UPS) with an Outperform rating and a $227 price target, appreciating its pricing momentum and its focus on costs.

The number of hedge funds tracked by Insider Monkey owning stakes in United Parcel Service, Inc. (NYSE:UPS) stood at 38 in Q2 2022. The stakes owned by these hedge funds hold a collective value of over $613 million. Bill & Melinda Gates Foundation Trust was one of the company’s major stakeholders in Q2.

Mayar Capital mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q2 2022 investor letter. Here is what the firm has to say:

“UPS has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”