UPS Increases Dividend 8.8%
The UPS (NYSE: UPS) Board of Directors today declared a regular quarterly dividend of $0.62 per share on all outstanding Class A and Class B shares, an increase of 8.8%. The dividend is payable on Mar. 12, 2013 to shareholders of record on Feb. 25, 2013.
“This dividend increase reflects the power of the UPS business model to deliver consistent returns to shareowners,” said Scott Davis, UPS Chairman and CEO. “During 2012 we generated almost $5.4 billion in free cash flow, enabling reinvestment for growth and greater shareowner distributions, which are a top priority at UPS.”
UPS has a long history of its commitment to cash dividends. For more than four decades it has either increased or maintained its dividend. Since 2000 its dividend has more than tripled.
Reflecting confidence in UPS's capital efficiency, the board also reauthorized the company's share repurchase program for $10 billion. The new share repurchase authorization has no expiration date and replaces the one approved in 2012. On January 31, UPS announced an increase in its 2013 share repurchase plans from $1.5 billion to $4.0 billion.
In other action, the board disclosed it has been advised by John Thompson, CEO of Virtual Instruments Corporation and the former Chairman and CEO of Symantec, he will not stand for re-election when his term expires in May. “I joined the board of UPS because it was the leading logistics company, delivering value to its customers, communities and shareholders around the world,” said Thompson. “It was my privilege to work with such a great team to expand its global footprint and drive innovation, especially in its technology. I've truly enjoyed serving during 12 years of tremendous growth for one of the world's greatest brands.”
Thompson has served on the board since 2000, making him the second longest serving board member. Davis said, “John's strategic counsel helped guide the development of new technologies, which led to multiple innovations in the way we serve customers and manage the business. His insights were invaluable and his contribution can't be underestimated.”
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.