United Parcel Service: A Dividend Growth Stock Expanding Its Services And Image

cheryl

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United Parcel Service: A Dividend Growth Stock Expanding Its Services And Image - Seeking Alpha

Summary
  • UPS's strategy to better accommodate its peak holiday deliveries caused it to overspend on holiday delivery preparations.
  • The company is working to address its past holiday delivery missteps by balancing cost efficiency with meeting peak package volume during its busiest delivery dates.
  • To help align costs, the company will expand capacity at shipping hubs in key areas to reduce the need for temporary workers and training costs.
  • UPS is also focusing on more profitable markets, such as the healthcare market, where a shipment must arrive expeditiously and at an appropriate temperature.
  • As the company resolves its past missteps and expands into more profitable markets, shareholders will be rewarded with a substantial dividend and share buybacks.
 
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