Could Buying UPS Today Set You Up for Life?
UPS (NYSE: UPS) is one of the most fascinating investment propositions in the marketplace right now. Considering the long term, there is significant potential for substantial long-term appreciation. However, in the near term, there is potential for some disappointment, and there are real questions over the sustainability of its dividend. Here's the lowdown.At the risk of losing half of you upfront, I'm going to cut to the chase. UPS is a stock that could generate great returns for investors, but be prepared for some potential near-term turbulence, and don't buy this stock if you are buying it mainly for its dividend.I'll break this argument down into its parts so that readers can form their own opinions. Let's start with the long-term bullish case. It rests on the idea that management is fundamentally doing the right things for the business over the long term by migrating its delivery volumes toward higher-margin deliveries. In addition, it's taking the right measures to boost productivity through technology investments in its so-called "network of the future."Continue reading
UPS (NYSE: UPS) is one of the most fascinating investment propositions in the marketplace right now. Considering the long term, there is significant potential for substantial long-term appreciation. However, in the near term, there is potential for some disappointment, and there are real questions over the sustainability of its dividend. Here's the lowdown.
At the risk of losing half of you upfront, I'm going to cut to the chase. UPS is a stock that could generate great returns for investors, but be prepared for some potential near-term turbulence, and don't buy this stock if you are buying it mainly for its dividend.
I'll break this argument down into its parts so that readers can form their own opinions. Let's start with the long-term bullish case. It rests on the idea that management is fundamentally doing the right things for the business over the long term by migrating its delivery volumes toward higher-margin deliveries. In addition, it's taking the right measures to boost productivity through technology investments in its so-called "network of the future."
