Let's be honest, folks, the stock market is feeling a bit manic right now. Everyone's chasing the next Tesla, the next Nvidia – anything with a whiff of AI attached to it. And while I love a good tech story as much as the next guy, I know a REAL opportunity when I see one. And that's why today, we're talking about United Parcel Service (UPS).
You might think, “UPS? Really, Frank? That's your big secret?” But hold on, because this 125-year-old delivery giant is proving that sometimes, slow and steady wins the race. When the market's going haywire, a company that literally delivers – day in and day out, no matter what – starts to look pretty darn appealing. Especially when it's paying you a juicy 4.8% dividend yield to just sit back and watch.
So, why is UPS a BUY right now? Let me break it down for you:
1. A Turnaround Story in the Making:
Remember back in the second quarter? Most of Wall Street yawned when UPS posted a decline in revenue and a BIG drop in operating income (those tech darlings were stealing all the headlines, as usual). But tucked away in their report was a nugget of gold: UPS returned to volume growth in the U.S. for the first time in NINE QUARTERS. Yes, folks, that's a genuine turnaround. And this isn't a one-off, as The Motley Fool pointed out in their recent analysis – “UPS returned to volume growth in the U.S. in the second quarter of 2024 for the first time in nine quarters.”
2. Expansion Where It Matters:
UPS isn't just sitting on its laurels, hoping the good times will keep rolling. They recently closed a smart acquisition, snapping up Estafeta, a leading Mexican express delivery company. As global trade shifts, Mexico's role is expanding rapidly, and UPS is right there, ready to capitalize on it.
3. Dividend Growth You Can Count On:
UPS isn't just handing out a decent dividend yield, they're GROWING it. The company has an impressive 15-year track record of dividend increases, and they're committed to keep that going. As Motley Fool notes, “Funding the dividend program is one of UPS’ top capital-allocation priorities.” That means you can collect reliable income today, while your investment grows for the future.
4. Share Buybacks – Sweetening the Deal:
And if that's not enough, UPS is using excess cash for share buybacks, which boosts the value of YOUR shares. They've authorized a $500 million buyback program for 2024, putting their money where their mouth is.
The Bottom Line:
Don't let the market's short-sighted obsession with flashy tech distract you from the REAL opportunity in front of you. UPS is a fundamentally strong company delivering consistent dividends and showing real signs of growth – a rare combination in today's turbulent market.
What to Do NOW:
Don't just take my word for it! Do your due diligence and research UPS for yourself. Check out their financials, analyze their dividend history, and see if it fits your investing goals.
And tune in tomorrow, because I'll be revealing a “secret” income strategy that could deliver 10X the returns of ordinary dividend stocks! You won't want to miss it.
