United Parcel Service Inc. Cl B (UPS) Dividends

UPS Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. In the case of UPS, the DDM model generated by StockNews estimates a return of negative 10.8% in comparison to its current price. To help understand and contextualize the model's evaluation of UPS, investors may wish to consider are:

• In comparison to other US listed dividend yielding stocks in the Industrials sector, the expected return of -10.8%, based on the stock's current share price and target price based on a dividend discount model, is greater than 82.1% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, United Parcel Service Inc bears a discount rate, according to our calculations, lower than 82.1% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for United Parcel Service Inc than it is for 77.73% of other dividend issuers in the Industrials sector.

UPS Dividends vs. Peers