Is UPS a blue chip stock?
Blue chip stocks are large, diversified, recognizable businesses that are market leaders in their industries. Think Apple, American Express, UPS, and Home Depot. Companies you know well.
| Company (Ticker) | Sector | Market Cap |
|---|---|---|
| Nvidia Corp. (NVDA) | Technology | $1.91T |
| JPMorgan Chase & Co. (JPM) | Financial | $533.63B |
| Salesforce (CRM) | Technology | $262.26B |
| Caterpillar (CAT) | Industrials | $177.11B |
UPS has raised its dividend for 15 consecutive years, including a 49% jump in early 2022. The company downplayed its dividend during its 2024 Investor and Analyst presentation. It is targeting a payout ratio of 50% of adjusted prior year earnings per share -- but the dividend is currently higher than that range.
A blue chip stock is a company that typically has a large market cap, a sterling reputation, excellent financials, and many years of success in the business world. A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns.
| Stock (ticker) | Market Capitalization |
|---|---|
| Johnson & Johnson (JNJ) | $378 billion |
| Procter & Gamble Co. (PG) | $377 billion |
| AbbVie Inc. (ABBV) | $320 billion |
| Coca-Cola Co. (KO) | $256 billion |
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| Amazon.com (AMZN) | 1.30 | Strong Buy |
| Microsoft (MSFT) | 1.32 | Strong Buy |
| Delta Air Lines (DAL) | 1.35 | Strong Buy |
| Nvidia (NVDA) | 1.38 | Strong Buy |
- Allegro MicroSystems, Inc. (NASDAQ:ALGM) ...
- Axcelis Technologies Inc. (NASDAQ:ACLS) ...
- Tower Semiconductor Ltd. (NASDAQ:TSEM) ...
- Rambus, Inc. (NASDAQ:RMBS) ...
- Skyworks Solutions, Inc. (NASDAQ:SWKS) ...
- NXP Semiconductors N.V. (NASDAQ:NXPI) Number of Hedge Fund Holders: 41.
UPS Is More Profitable
FedEx's operating margin has risen from 3.3% in 2020 to 5.9% in 2023, while UPS' operating margin fell from 13.2% in 2019 to 10% in 2023. Also, looking at the last twelve months period, UPS' operating margin of 10.6% fares better than 7% for FedEx.
If you are comfortable with the long-term outlook and look forward to a 4% dividend yield, UPS is an ideal way to get some income and invest in a recovery play for 2024.
United Parcel Service stock has received a consensus rating of hold. The average rating score is and is based on 36 buy ratings, 42 hold ratings, and 6 sell ratings.
Which stock will boom in 2024?
| Name | Book Value | 1 Year (%) |
|---|---|---|
| J Taparia Projects | ₹ 18.56 | 345.61% |
| Rasi Electrodes | ₹ 9.45 | 52.90% |
| 3P Land Holdings | ₹ 37.75 | 24.68% |
| SAL Steel | ₹ 4.87 | 110.65% |
| Stock | 2024 return through March 31 |
|---|---|
| MicroStrategy Inc. (MSTR) | 169.9% |
| SoundHound AI Inc. (SOUN) | 177.8% |
| Vera Therapeutics Inc. (VERA) | 180.4% |
| Avidity Biosciences Inc. (RNA) | 182% |
- Best safe stocks to buy.
- Berkshire Hathaway.
- The Walt Disney Company.
- Vanguard High-Dividend Yield ETF.
- Procter & Gamble.
- Vanguard Real Estate Index Fund.
- Starbucks.
- Apple.
What do IBM, Walmart, JPMorgan Chase, and DuPont have in common? Although they are in different sectors, they are all known as blue chip companies. Blue chip companies are the mature firms that represent the stalwarts of an industry.
Many investors turn to blue chips for their longstanding, rising dividends. Many investors believe that blue chips can survive market challenges of many kinds; while this may be largely true, it is not a guarantee. For this reason, it's crucial to diversify a portfolio beyond only blue chip stocks.
Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.
Alongside Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Adobe Inc. (NASDAQ:ADBE) is one of the best money making stocks to invest in. In its Q3 2023 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Adobe Inc.
| Company | Performance (Year) |
|---|---|
| NRG Energy Inc. (NRG) | 107.45% |
| Builders Firstsource Inc (BLDR) | 99.39% |
| Broadcom Inc (AVGO) | 98.84% |
| GE Aerospace (GE) | 96.46% |
| Company Name | LTP | % Change |
|---|---|---|
| DIL | 8.3 | 1.22 |
| Kanani Industries | 3.8 | 0.00 |
| Dynamic Cables Ltd | 437.75 | -0.60 |
| Hilton Metal Forging | 116 | -0.73 |
Monolithic Power Systems, Inc. (NASDAQ:MPWR), Lattice Semiconductor Corporation (NASDAQ:LSCC), Taiwan Semiconductor Manufacturing Company (NYSE:TSM), and Analog Devices, Inc. (NASDAQ:ADI) are some of the fastest growing and semiconductor stocks out there.
What is the most unpredictable stock?
| Symbol | Volatility | Change % |
|---|---|---|
| LICN D | 94.90% | −42.19% |
| MMFI D | 85.37% | −18.63% |
| SSMFL D | 83.76% | +7.59% |
| ZZAPP D | 72.31% | +1.59% |
Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.
UPS is making underlying improvements to its business, and when the economy recovers, you can expect its volumes to start improving again. In addition, in response to weakening demand, UPS is cutting 12,000 jobs in 2024, resulting in $1 billion in cost savings.
There's reason for investors to have confidence in both goals. For example, UPS expanded its penetration of the U.S. SMB market from 27% in 2021 to 29% in 2023, resulting in a 12% boost in revenue per piece (RPP). Management expects to get to 35% in 2026 and 40% in the longer term.
Factors Favoring UPS
UPS demonstrates financial strength with a robust $5.3 billion free cash flow in 2023. Shareholder-friendly actions, including a 15th consecutive annual dividend increase and a $5 billion share repurchase authorization, bode well.
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