With a return of less than 1.4%, the S&P 500 nowadays does not pay investors large dividends. But there are some attractive options, especially given the fall of many stocks in recent months. One looks especially attractive Joint Parcel Service (NYSE: UPS). Down 16% since the beginning of the year, which means that its profitability has been growing recently. Today, investors can earn a return of 3.4%. With an investment of $ 25,000, that could mean $ 845 in recurring profits for the year.
Problems with supply chains and general concerns about the slowdown in the global economy are some of the main reasons why UPS is likely to be experiencing difficulties recently. But the business remains promising for investment as the growth of e-commerce and logistics will continue to expand in the future. While there may be hiccups today, it doesn’t change the company’s long-term appeal.
With stocks trading below $ 180 and approaching a low of 52 weeks, investors have the opportunity to take advantage of broken stocks that not only bring dividend yields above average, but also have attractive growth prospects over time. to pull. Its price-to-earnings ratio is just under 15, which makes its price tag attractive. In recent years, it has often been observed that UPS shares are traded more than 20 times more than in recent earnings.
The fundamentals of the logistics company are also solid: UPS reports a return on net income of at least 10% in each of the last four quarters. For investors, this can be a great stock that can be bought and held for years.