Core Insights - The article emphasizes the importance of dividends in investment strategies, highlighting that even renowned investors like Warren Buffett recognize their value, despite Berkshire Hathaway not paying dividends [1] Company Summaries - **Pfizer**: Pfizer has a recent dividend yield of 7.1%, with total annual dividends increasing from $1.20 in 2016 to $1.70 recently. Despite poor stock performance averaging annual gains of 1.84% over the past decade, the company has a promising drug pipeline and a low forward P/E ratio of 8.3 compared to its five-year average of 10.2 [4] - **Caterpillar**: Caterpillar offers a dividend yield of 1.56%, above the S&P 500's yield of approximately 1.25%. The company has shown solid long-term performance with average annual gains of 17.6% over the past decade, and its total annual dividend has grown from $3.28 in 2018 to $5.64 recently [5] - **United Parcel Service (UPS)**: UPS has a dividend yield of 6.5%, with total payouts increasing from $3.64 in 2018 to $6.54 recently. The stock has had an average annual gain of 4.24% over the past decade, although growth has slowed recently due to economic uncertainties and competition from Amazon [6][7] - **Chevron**: Chevron's recent dividend yield stands at 4.78%, with total annual payouts rising from $4.76 in 2019 to $6.68 recently. The stock has averaged 14.2% annual growth over the past five years, supported by significant share buybacks and diversification in energy production and refining [8] ETF Considerations - The article suggests considering dividend-focused ETFs for investment, listing several options with their recent yields and average annual returns: - iShares Preferred & Income Securities ETF (PFF): 6.68% yield, 5-year average return of 3.22% - Schwab U.S. Dividend Equity ETF (SCHD): 3.97% yield, 5-year average return of 13.34% - Fidelity High Dividend ETF (FDVV): 3.02% yield, 5-year average return of 17.91% - Vanguard High Dividend Yield ETF (VYM): 2.86% yield, 5-year average return of 14.60% [9]

Core Viewpoint - United Parcel Service (UPS) is experiencing a stock recovery after a challenging year, with a recent gain of over 5% in the last month, outperforming the S&P 500 index [1][2] Financial Performance - UPS reported an adjusted earnings per share (EPS) of $1.49 for Q1 2025, exceeding analyst expectations of $1.38 and reflecting a 4.2% increase year-over-year [3] - The company's adjusted operating margin is at 8.2%, indicating improved operational efficiency despite a slight dip in overall revenue [4] Strategic Focus - UPS's management strategy, termed "better, not bigger," emphasizes securing more profitable deliveries rather than merely increasing package volume [6] - Revenue in the U.S. Domestic segment grew by 1.4% to $14.46 billion, driven by a 4.5% increase in revenue per piece, showcasing effective pricing power [6] Market Position - UPS plays a crucial role in the global economy, providing a reliable logistics network amid complex supply chains and shifting trade policies [7] - The company is a vital partner for businesses of all sizes, enhancing its position in high-value areas such as healthcare product shipping [8] Dividend and Valuation - UPS offers a dividend yield of 6.51%, with an annual dividend of $6.56 and a 16-year track record of maintaining or increasing dividends [9][11] - The stock is currently trading near $100, significantly below its 52-week high of over $148, suggesting potential for recovery not yet reflected in its price [11] Future Outlook - Analysts express cautious optimism regarding UPS's rebound, supported by a disciplined cost reduction plan of $3.5 billion for 2025 and a favorable valuation with a P/E ratio of 12.66 [10][11]

Key Takeaways UPS is trading above industry and rival valuations, with a forward P/E of 13.15X. A 6.6% dividend yield and aggressive buybacks underscore UPS's strong shareholder return focus. Revenue weakness, high labor costs, and falling volumes weigh on earnings and margin outlook.United Parcel Service (UPS) is currently considered relatively overvalued, trading at a forward 12-month price to earnings (P/E) of 13.15X. This figure surpasses the Zacks Transportation—Air Freight and Cargo industry average ...

Core Viewpoint - FedEx's shares dropped significantly due to a disappointing profit forecast, attributed to the impact of President Trump's tariffs on global transit [1][3]. Financial Performance - FedEx expects earnings per share of $3.40 to $4 for the current quarter, slightly below the forecasted $4.05 [1]. - The company reported adjusted earnings per share of $6.07 for the quarter ended May 31, exceeding expectations of $5.84 [12]. - Revenue for the same quarter was $22.22 billion, surpassing projections of $21.79 billion [13]. - US daily package volume increased by 6% year-over-year, with US ground home delivery volume rising by 10% [14]. Market Sentiment - The disappointing forecast led to a decline in investor confidence, as FedEx is viewed as a bellwether for various industries [1][15]. - The stock initially fell by about 6% on the day of the announcement [3]. Trade and Tariff Impact - FedEx executives indicated that tariff policies are expected to continue affecting US-China air trade, with the company being more exposed to China compared to UPS [4]. - The tariffs have been reduced from an initial 145% to 30%, but this remains significantly higher than previous rates [4]. - The end of the "de minimis" exemption, which allowed duty-free entry for shipments under $800, is also impacting FedEx's operations [5]. Cost Management - FedEx announced plans for $1 billion in cost-cutting measures for fiscal year 2026, although challenges are anticipated due to ongoing trade unpredictability [11].

UPS (NYSE: UPS ) ranks No. 11 in the S&P 500 in terms of dividend yield. The forward rate is now 6.84%, according to Seeking Alpha's data as of May 21, 2025. I assert theFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senio ...

Two investing adages might seem to contradict each other. Many investors have long followed the maxim to "buy low and sell high." On the other hand, they've also been told: "Don't try to catch a falling knife."Which of the familiar sayings applies to United Parcel Service (UPS 0.85%)? Shares of the package delivery giant have plunged more than 50% below the high set in 2022. However, I don't view UPS as a "falling knife" to avoid. Instead, I think this ultra-high-yield dividend stock is a great pick for lon ...

Amazon and FedEx have entered a package delivery deal.  Business Insider reported, citing an internal document, that a new agreement between the e-commerce giant and delivery company was inked in late February. Under the deal, FedEx will transport some packages that Amazon customers have ordered to their doors on behalf of the e-commerce giant, according to the outlet.  Amazon spokesperson Steve Kelly told FOX Business the company has "reached an agreement with FedEx to serve as one of several third-party p ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Amazon will have FedEx deliver large packages to the retailer’s customers for the first time in six years.The companies reached a multiyear agreement that renews a relationship that ended in 2019, Bloomberg reported Monday (May 12).The deal follows a January announcement by UPS that it will cut the number of packages it delivers for Amazon by half by the end of next year, according to the report.Amazon said in the report that it does not plan to use FedEx to replace the business it still does with UPS; inst ...

Amazon is going back to FedEx after falling out with UPS. According to an internal document obtained by Business Insider, Amazon signed a new partnership deal with FedEx in late February to handle some parts of its package deliveries.The FedEx deal gives Amazon "cost favorability" compared to UPS, the document said, indicating the retail giant stands to save money from the transition. The document doesn't specify the extent of the deal or which Amazon packages will be handled by FedEx."Securing FedEx ca ...