UPS and LTC: Stocks to Watch for Income Investors

A recent report highlights UPS and LTC Properties as strong contenders for income investors, thanks to UPS's potential turnaround and LTC's robust dividend amidst an aging population.

Date: 06-10-2024

AI Rating: 5

Performance Overview of UPS

UPS has experienced challenges, evident in its second-quarter consolidated revenues, which fell by 1.1% year-over-year. More strikingly, its consolidated operating profit plummeted by 30.1%, and adjusted diluted earnings per share (EPS) dropped by 29.5%. This performance clearly shows significant pressure on the company's financials.

However, UPS's return to volume growth in the U.S. after nine quarters of decline and a strategic acquisition of Estafeta indicates a turning point. The company's commitment to maintaining a solid dividend yield of 4.8% throughout its challenges further underscores its potential rebound, making it attractive for dividend-seeking investors.

LTC Properties' Position

LTC Properties has shown stability, maintaining monthly dividends even during the COVID-19 pandemic, a trait uncommon among its peers. This company has recorded 233 consecutive monthly dividend payments, which speaks volumes about its reliability as an income investment.

With America's aging population, particularly the growth of those aged 85 and older, the demand for senior housing and skilled nursing properties is expected to rise. This demographic trend positions LTC Properties for future growth. The current dividend yield of 6.2% offers an appealing prospect for investors looking for safe income streams.

Investment Ratings

For UPS, the risks highlighted by its declining revenues and profits garner a slightly negative rating. Nevertheless, its strategic moves and dividend yield suggest improvement potential.

Conversely, LTC Properties presents a positive investment narrative buoyed by a strong historical performance in dividend payments and favorable demographic trends.

Stocks: UPS LTC