UPS Announces Quarterly Dividend and $5 Billion Share Repurchase Program

Rhea-AI Summary

UPS has declared a quarterly dividend of $1.02 per share on all outstanding shares, to be paid on September 9, 2021, with record shareholders by August 23, 2021. Additionally, UPS announced a new $5.0 billion share repurchase program, replacing the previous $2.1 billion authorization. CEO Carol Tomé emphasized the company's dedication to consistent dividend payments and the importance of a disciplined capital allocation strategy that balances dividends and share repurchases.

Positive

• Quarterly dividend of $1.02 per share supports shareholder returns.
• New share repurchase program of $5.0 billion enhances shareholder value.
• Commitment to a dividend payout ratio of approximately 50% of adjusted net income starting in 2022.

Negative

• None.

ATLANTA, Aug. 05, 2021 (GLOBE NEWSWIRE) -- UPS (NYSE: UPS) today announced its regular quarterly dividend of $1.02 per share on all outstanding Class A and Class B shares.

The dividend is payable September 9, 2021 to shareowners of record on August 23, 2021. 

In addition, the Company announced that its Board of Directors has approved a new share repurchase program of $5.0 billion, replacing its existing $2.1 billion authorization.

Carol Tomé, UPS chief executive officer, commented, “Commitment to the dividend is one of UPS’s core principles and a hallmark of the company’s financial strength. As previously disclosed, we expect to continue paying regular cash dividends, with a targeted dividend payout ratio, starting in 2022, of approximately 50% of our prior year’s adjusted net income. In addition, we are pleased that the Board has increased our flexibility to engage in share repurchases. UPS will deploy a disciplined and balanced approach to capital allocation, including returns to shareowners through dividends and share repurchases.”

About UPS

UPS (NYSE: UPS) is one of the world’s largest package delivery companies with 2020 revenue of $84.6 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. The company’s more than 540,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes a strong and unwavering stance in support of diversity, equality, and inclusion. The company can be found on the Internet at www.ups.com, with more information at www.about.ups.com and www.investors.ups.com.

FAQ

What is the UPS quarterly dividend amount for September 2021?

The UPS quarterly dividend amount is $1.02 per share.

When will UPS's dividend be paid?

The dividend will be paid on September 9, 2021.

What is the new share repurchase program amount for UPS?

UPS has announced a new share repurchase program of $5.0 billion.

What is UPS's targeted dividend payout ratio for 2022?

UPS's targeted dividend payout ratio for 2022 is approximately 50% of prior year's adjusted net income.