Forward dividend yield
A forward dividend yield is estimated by expressing the expected dividend as a percentage of the present stock price. This type of yield considers a stock’s latest dividend payment and is annualized over the next year. On the other hand, a trailing dividend yield considers a stock’s past dividends in the last year and expresses it as a percentage of the current stock price. When dividend growth can be predicted with some certainty, it’s better to consider forward dividend yield.
UPS’s forward dividend yield
United Parcel Service is predominantly a parcel delivery company. In a true sense, the company can be compared only with FedEx (FDX), whose business model is similar. But we’ll also cover the publicly traded, dividend-paying major LTL (less-than-truckload) carriers and the clearing and forwarding and freight brokerage logistics companies.
As you can see in the above chart, among its peers, United Parcel Service has the highest forward dividend yield of 3.3%. In the past three years, its forward dividend yield has risen steadily. C.H. Robinson Worldwide (CHRW), which offers logistics and transportation services in North America, Europe, and Asia-Pacific, has a forward dividend yield of 2.1%.
It’s followed by third-party logistics services provider Expeditors International of Washington (EXPD) at 1.3%. Forward Air (FWRD), an LTL, intermodal, and truckload services provider, has a yield of 1%. ArcBest (ARCB), an integrated logistics solutions provider, has a forward dividend yield of 0.99%. FedEx (FDX), UPS’s archrival, has a yield of 0.82%. Old Dominion Freight Lines (ODFL) has the lowest yield of 0.4% among these transportation (IYJ) and logistics companies.
Next, let’s see how United Parcel Service stock has fared so far in 2018.