UPS Boosts 4Q Dividend By 11 Percent To 52 Cents

ATLANTA (AP) - United Parcel Service Inc. is boosting its fourth-quarter dividend by 11 percent just days after reporting strong earnings.

The global freight giant, based in Atlanta, said Thursday that its board of directors voted to increase the dividend to 52 cents from 47 cents. The dividend will be paid on March 2 to shareholders of record as of Feb. 14.

UPS on Tuesday reported that fourth-quarter net income leaped 48 percent as the economic recovery boosted global shipments. Revenue rose 8 percent to $13.42 billion.

The company said it expects to generate record net income in 2011 by focusing on export-oriented markets such as Germany and emerging economies such as China. UPS hopes strong sales in those countries will offset expected declines in established markets such as North America.

UPS expects to earn between $4.12 and $4.35 in 2011. It made $4.17 per share in 2007, excluding one-time items. The recession began in December of that year.

UPS Chairman and CEO Scott Davis said Thursday the company's board approved the higher dividend because directors believe UPS' cash flow will be strong in 2011. He said the company is committed to "significantly increasing" shareholder distributions.

The company has more than tripled its dividend since 2000, when it stood at 17 cents per share. It last increased its dividend a year ago, to 47 cents from 45 cents.

UPS shares edged down 6 cents to $74.23 in late, electronic trading Thursday. The stock gained 25 cents to $74.29 during the regular trading session. Over the past year, shares have traded between $55.77 and $75.19.