UPS board boosts dividend, stock buyback authorization
The Board of Directors of UPS has approved a second increase in six months in the company’s quarterly dividend, raising the cash payout from 21-cents to 25-cents per share on all outstanding Class A and Class B shares.
The latest increase amounts to a 19% boost. Since the beginning of 2003, the Board has increased the quarterly dividend by 32%, up from 19-cents per share.
The dividend is payable Sept. 9, 2003, to shareholders of record on Aug. 25, 2003.
The Board, meeting at a regularly scheduled session, also raised to $1 billion its authorization for the repurchase of Class A and Class B shares, up from a roughly $500 million balance from a previous authorization.
“The 32% increase in our dividend since the beginning of the year reflects the company’s continuing strong cash flow and its positive earnings growth outlook,” said UPS Chairman and CEO Mike Eskew. “Another catalyst was the recently enacted tax reform. The change in tax law certainly makes dividend payouts more attractive and tax efficient.”
As of June 30, 2003, the end of UPS’s second quarter, the company had 1.13 billion total shares outstanding. The company generated operating cash flow of $2.6 billion during the first six months of 2003.
