4. United Parcel Service, Inc. (NYSE:UPS)
Bill & Melinda Gates’ Stake Value: $582,688,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 2.44%
Number of Hedge Fund Holders: 52
Dividend Yield: 2.24%
United Parcel Service, Inc. (NYSE:UPS) ranks fourth on our list of Bill Gates’ 10 dividend stocks. It is an American shipping and supply chain management company. The company uses a hub-and-spoke model for its network.
As of Q2 2021, Gates Foundation holds 2.8 million shares in United Parcel Service, Inc. (NYSE:UPS), valued at $582.6 million. The company represents 2.44% of the hedge fund’s 13F portfolio. In September, Evercore ISI initiated its coverage on United Parcel Service, Inc. (NYSE:UPS) with an ‘Outperform’ rating and a $225 price target. The firm’s analyst noted the company’s pricing power with a focus on capital discipline. The firm believes that United Parcel Service, Inc. (NYSE:UPS) can benefit from higher global supply chain urgency. In Q2 2021, the company posted an EPS of $3.06, beating the estimates by $0.25. United Parcel Service, Inc. (NYSE:UPS) pays an annual dividend of $4.08 per share, yielding 2.24%. The stock returned 12.02% in 2021.
The number of hedge funds having stakes in United Parcel Service, Inc. (NYSE:UPS) grew in the second quarter to 52, from 44 in the previous quarter. The total value of these stakes is over $2.1 billion.
ClearBridge Investments mentioned United Parcel Service, Inc. (NYSE:UPS) in its Q2 2021 investor letter. Here is what the firm has to say:
“We funded the shift primarily with trims in UPS following big gains in this name. UPS is a long-term holding that have been and remain core holdings. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.
UPS too has been a core, long-term holding. For many years its stock languished alongside fundamental performance that was both uneven and often uninspiring. Since Carol Tomé took the reins last summer and capitalized on COVID-19-related freight disruptions, UPS’s earnings have soared, and the stock has followed suit. We trimmed the position toward the end of the quarter despite continued near-term momentum and an undemanding valuation multiple. This trim reflects the longerterm risk, though hard to quantify, that Amazon may become a full-fledged competitor and meaningfully disrupt the dynamics of the industry. While not our base case, this risk cannot be disproven. We continue to be very bullish on UPS’s near-term outlook and optimistic about its longer-term outlook, while also continually looking over our shoulder to make sure Amazon is not on our heels.”
