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Comparing UPS’s Dividend Yield with Its Peers

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UPS’s forward dividend yield

United Parcel Service’s (UPS) forward dividend yield of 3.1% is the highest in its peer group. In this series, we’re looking at US public transportation stocks operating in the LTL (less-than-truckload) sector. Apart from these companies, we’re also looking at major clearing and forwarding firms and freight brokerage companies.

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UPS’s stock returns

The major factor behind the rise in UPS’s forward dividend yield is the recent decline in its stock price. Since January 1, the company’s stock has delivered a return of -6.0%. In the last year, UPS stock has returned 11.0%. Compared with its industry peers, the company’s returns are on the lower side. Below are the returns of the companies in its peer group in the last year.

  • FedEx (FDX): 29.0%
  • Old Dominion Freight Line (ODFL): 71.0%
  • C.H. Robinson Worldwide (CHRW): 23.0%
  • Expeditors International of Washington (EXPD): 36.0%
  • ArcBest (ARCB): 163.0%
  • Forward Air (FWRD): 11.0%

Peer group’s dividend yields

After United Parcel Service, third-party logistics company C.H. Robinson Worldwide (CHRW) has the highest forward dividend yield of 2.2%. CHRW is followed by Expeditors International of Washington (EXPD), which has a forward dividend yield of 1.2%. 

Forward Air has a forward dividend yield of 1.1% and ranks fourth among UPS’s peers. FedEx and J.B. Hunt Transport Services have forward dividend yields of 0.8% and 0.76%, respectively.

Integrated logistics (XTN) solutions provider ArcBest has a forward dividend yield of 0.72%. Old Dominion Freight Line has a forward dividend yield of 0.36%, which is the lowest in UPS’s peer group. FWRD and ODFL have returned significantly more value to investors in terms of capital appreciation, which also points to their lower dividend yields.

In the final part of this series, we’ll take a quick look at United Parcel Service’s first quarter results.

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