Get Paid by UPS Stock While It Turns Its Business Around
As part of my investing strategy, I sometimes like to buy great dividend stocks in the middle of turnarounds, which brings me to the logistics giant United Parcel Service (UPS). The company benefited from a surge in package volumes from the COVID-19 pandemic. However, that proved to be a temporary windfall, and shares have tumbled 31% in the past three years.
I believe this sell-off could be an opportunity for shareholders to get in on a company with a solid dividend yield and capital appreciation prospects, especially since UPS’ recent financial results provided hope that its plan to return the business to pre-COVID growth is working. As a result, I am initiating coverage on the stock with a Buy rating.
