UPS Announces Quarterly Dividend of $1.64 Per Share

UPS announced a quarterly dividend of $1.64 per share, payable September 4, 2025, to record holders on August 18, 2025. The company has maintained or increased its dividend annually since going public in 1999. With $91.1 billion in revenue in 2024, UPS is one of the world's largest companies, providing integrated logistics solutions in over 200 countries.

United Parcel Service (UPS) has announced a quarterly dividend of $1.64 per share, payable on September 4, 2025, to record holders on August 18, 2025. This dividend marks the continuation of UPS's consistent dividend policy since it went public in 1999. With $91.1 billion in revenue in 2024, UPS remains one of the world's largest companies, offering integrated logistics solutions across over 200 countries [2].

Dividend History and Yield

UPS's annual dividend stands at $6.56 per share, with a yield of 7.61% [1]. The dividend is paid quarterly, with the last ex-dividend date being May 19, 2025. The company's dividend history demonstrates a commitment to rewarding shareholders, with consistent increases over the years.

Recent Performance and Growth Prospects

In the 12 months through July 31, 2025, UPS shares slipped 19.6%, while the S&P 500 climbed 18.5%. The company faced challenges such as soft demand for small packages, extra costs from tariffs, and scaling back lower-margin business with Amazon [2]. Despite these challenges, UPS expects e-commerce to continue growing, which could drive parcel demand. The company is also investing in tech-powered logistics, acquisitions, and network upgrades to boost growth [2].

Valuation and Market Sentiment

UPS trades at a forward price-to-earnings (P/E) ratio of 16.0x, well below the 25.0x market average [2]. Analyst sentiment is cautiously positive, with about 60% rating it a Buy and an average price target around 50% above the current share price. However, recent lack of earnings guidance and high volatility have tempered excitement [2].

Key Risks and Outlook

Key risks for UPS include economic sensitivity, tariffs and trade uncertainty, customer concentration shift, competitive intensity, leverage, and coverage. The company's vast network and cost-saving initiatives could mitigate these risks. Long-term investors might see the current drop in share price as a buying opportunity, while those more risk-averse may want to wait for clearer evidence of margins and sales recovery [2].

Conclusion

UPS's consistent dividend policy, strong network moat, and solid free cash flow position the company favorably for long-term investors. However, short-term risks such as stabilizing volumes and rebuilding profit margins must be addressed. Investors should closely monitor UPS's upcoming earnings reports and strategic initiatives to gauge the company's performance and future prospects.

References
[1] https://stockanalysis.com/stocks/ups/dividend/
[2] https://finimize.com/content/ups-asset-snapshot