Smart Dividend Portfolio Edition: Income Delivery
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Dear Investor,
Welcome to this edition of TipRanks’ Smart Dividend Portfolio & Newsletter.
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Market-Moving News: Mar 16, 2026
U.S. stocks ended the week lower as war risk in the Gulf and fresh macro data weighed on sentiment. The S&P 500 (SPX) fell 1.6% for the week and closed Friday at 6,632. The Nasdaq 100 (NDX) slipped 0.62%, while the Dow Jones Industrial Average (DJIA) lost about 2%.
At the same time, oil prices (CM:CL) climbed as the Iran conflict disrupted supply routes. West Texas Intermediate crude rose near $99 per barrel, and Brent crude (CM:BZ) moved above $103. Meanwhile, the 10-year Treasury yield held near 4.28%, gold (CM:XAUUSD) traded around $5,020, and Bitcoin (BTC-USD) climbed to about $71,000.
Even so, the market action showed a shift toward caution. Utilities and energy led gains during the week, while tech and other growth groups lagged as traders weighed higher oil prices and slower growth signals.
First, the week’s key theme came from the Gulf. Iran’s leadership signaled that the Strait of Hormuz could remain closed, which sharply reduced ship traffic through one of the world’s main oil routes.
As a result, oil prices climbed. Brent crude closed above $100 for the first time since 2022, while West Texas Intermediate crude settled near $99 per barrel.
The tension also sparked fears of a new inflation wave. Higher fuel costs can lift prices across the economy and slow growth at the same time.
David Aspell, chief investment officer of global macro at Mount Lucas Management, said the issue is now shaping investor views. “Earnings are pretty good, but sentiment is difficult,” he said. “The oil part of the sentiment and equity valuation embeds an interest rate path which is now being questioned.”
Energy stocks gained during the week as traders priced in a tighter supply. At the same time, airlines came under pressure as jet fuel costs climbed. United Airlines Holdings (UAL) and other carriers warned that higher fuel prices could push ticket prices higher and weigh on near-term earnings.
Meanwhile, the conflict itself showed no clear path to calm. President Donald Trump warned that the U.S. could launch further strikes on Iran’s Kharg Island oil hub while urging allies to secure the Strait of Hormuz.
At the same time, new economic data pointed to slower growth in the U.S. economy. Gross domestic product growth for the fourth quarter was revised down to just 0.7%, roughly half the prior estimate of 1.4%.
Consumer spending growth also slowed to 2% for the quarter. In addition, core personal consumption expenditures inflation rose 0.4% in January and 3.1% year-over-year.
The mix of weak growth and firm inflation raised concern about stagflation. As a result, traders reduced bets on Federal Reserve rate cuts later this year.
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This Week’s Quality Dividend Stock Idea
United Parcel Service (UPS) is a U.S.-based transportation and logistics company that provides package delivery, supply chain management, and freight services to businesses and consumers worldwide. Its operations include domestic and international small-package delivery, contract logistics, freight forwarding, and e-commerce fulfillment. The company serves customers across a wide range of industries, including retail, healthcare, manufacturing, and technology. UPS supports these services through one of the world’s largest integrated logistics networks, which includes extensive air and ground transportation capabilities as well as a broad distribution and fulfillment infrastructure spanning North America, Europe, and Asia.
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Routes and Roots
United Parcel Service traces its origins to 1907, when James E. Casey founded the American Messenger Company in Seattle, Washington to provide local messenger and delivery services for retailers. As demand for package delivery grew, the company introduced a consolidated delivery model that allowed multiple merchants’ packages to be delivered along the same routes, improving efficiency and lowering costs. This early emphasis on operational discipline and route optimization laid the foundation for scalable growth.
In 1919, the company adopted the name United Parcel Service and began expanding beyond Seattle into West Coast markets such as Oakland and later Los Angeles. Throughout the mid-20th century, UPS steadily broadened its geographic footprint while investing in a standardized brown delivery fleet and centralized sorting operations. These improvements enhanced reliability and productivity, supporting steady shipment growth as parcel delivery became increasingly important for retailers and manufacturers.
A major milestone came in the 1970s, when regulatory changes allowed UPS to expand nationwide. By 1975, the company had established service across all 48 contiguous U.S. states, significantly increasing shipment volumes and operating scale. In the following decades, UPS continued to invest in logistics infrastructure, including automated sorting facilities, advanced package tracking technology, and a growing air cargo network.
International expansion accelerated in the late 1980s and 1990s as UPS built a global transportation network to support cross-border trade. The company entered numerous international markets and expanded its air fleet, strengthening its ability to provide time-definite international delivery services. In 1999, UPS went public in one of the largest initial public offerings at the time, providing capital to support technology investments and global network expansion.
During the 2000s and 2010s, UPS broadened its capabilities beyond traditional parcel delivery, expanding into supply chain management, freight forwarding, healthcare logistics, and e-commerce fulfillment services. The rapid growth of e-commerce further increased package volumes and reinforced UPS’s role as a key logistics partner for retailers and businesses worldwide.
In recent years, acquisitions have played an important role in refining the company’s strategic focus. In 2015, UPS acquired Coyote Logistics to expand its truckload brokerage capabilities, although the business was later divested to RXO in 2024. More recently, the company has focused on technology-enabled logistics and healthcare supply chains. Acquisitions such as Roadie in 2021 strengthened last-mile delivery capabilities, while deals including Bomi Group in 2022 and MNX Global Logistics in 2023 expanded UPS’s presence in healthcare logistics. The company also acquired Happy Returns in 2023 to improve e-commerce returns management.
UPS continued to deepen its healthcare logistics network last year through the acquisitions of Frigo-Trans and BPL, along with the $1.6 billion purchase of Andlauer Healthcare Group. The company also agreed to acquire Estafeta Mexicana to expand its ground delivery network in Mexico. At the same time, UPS streamlined its portfolio by divesting lower-margin businesses, including the divestiture of Ware2Go to Stord in 2025.
The company continues to pursue selective acquisitions, but with a relatively cautious approach. Rather than pursuing large transformational deals, management indicated that the focus will remain on smaller “tuck-in” acquisitions that strengthen specific capabilities, particularly in areas such as healthcare logistics.
Together, these developments reflect UPS’s ongoing transition toward higher-value, specialized logistics services, particularly in healthcare and technology-enabled delivery, while maintaining the global transportation network that has supported its long-term revenue and earnings growth.
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Logistics Engine
UPS operates an integrated transportation and logistics network designed to move packages and freight efficiently across domestic and international markets. The company generates revenue primarily through time-definite package delivery services, supported by a global air and ground network, advanced sorting infrastructure, and technology systems that track shipments across the supply chain.
The company organizes its operations around three core segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. The U.S. Domestic Package segment is the largest contributor to revenue and profitability, providing ground and air delivery services for businesses and consumers across the United States. Shipment volumes in this segment are driven by e-commerce fulfillment, retail distribution, and business-to-business shipping. UPS’s dense delivery network and route optimization capabilities allow it to handle large package volumes efficiently, supporting strong operating leverage as shipments increase.
The International Package segment provides time-definite delivery services to more than 200 countries and territories. This business benefits from cross-border trade, global manufacturing supply chains, and rising demand for international e-commerce shipments. UPS supports these services through a global air fleet, international sorting hubs, and customs brokerage capabilities, enabling the company to provide reliable international delivery with integrated tracking and logistics support.
The Supply Chain Solutions segment broadens UPS’s business beyond traditional parcel delivery. It includes contract logistics, freight forwarding, healthcare logistics, and technology-enabled fulfillment services. Healthcare logistics has become a particularly important growth area, supported by specialized capabilities such as temperature-controlled storage, time-critical transport, and regulatory compliance for pharmaceutical and medical shipments.
Across its network, UPS benefits from significant scale and infrastructure advantages. The company operates thousands of distribution facilities, an extensive fleet of ground vehicles, and one of the world’s largest cargo airlines. Investments in automation, data analytics, and route optimization help improve network efficiency.
Together, high shipment volumes, global network density, and specialized logistics services support recurring demand from retailers, manufacturers, healthcare providers, and e-commerce companies. These structural advantages enable UPS to generate consistent operating cash flow while continuing to invest in technology, capacity expansion, and higher-value logistics services that support long-term earnings growth.
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Parcel Pivot
Against this operational backdrop, management has begun reshaping the mix of shipments moving through the UPS network. One of the most significant strategic developments is the company’s planned reduction in package volumes from Amazon, a move management describes as a gradual “glide-down.” This initiative involves deliberately scaling back Amazon-related shipments over a two-year period.
Amazon has historically been one of UPS’s largest customers, contributing substantial package volume. However, many of these shipments generate lower margins compared with packages from small and medium-sized businesses, healthcare customers, and enterprise shippers. At the same time, Amazon has spent years building its own logistics infrastructure – including aircraft, trucks, and last-mile delivery drivers – which has steadily reduced its reliance on third-party carriers.
In response, UPS decided to intentionally reduce its exposure to this lower-margin volume. Management describes the transition as a two-year effort to reshape the shipment mix moving through the company’s network. Over this period, UPS plans to remove roughly 2 million Amazon packages per day, representing about half of the Amazon volume it handled in 2024. In revenue terms, the company is giving up approximately $5 billion in annual sales in order to improve profitability.
The transition began in 2025, when UPS removed about 1 million Amazon packages per day from its delivery network. Another 1 million packages per day are expected to be eliminated in 2026, completing what management describes as a six-quarter glide-down plan. The impact has already appeared in operating metrics. Average daily volume declined 10.8% year over year in the fourth quarter, with more than half of the decline directly related to the reduction in Amazon shipments.
The objective of this strategy is not to shrink the business, but to improve the quality of revenue flowing through the network. As lower-margin Amazon shipments are removed, UPS is filling that capacity with higher-value packages from other customers, including returns logistics, shipments from small and medium-sized sellers operating on Amazon’s marketplace, and premium delivery relationships with enterprise clients.
This shift in shipment mix is already influencing pricing metrics. In the fourth quarter, U.S. revenue per package increased 8.3% year over year, marking the strongest growth rate for that metric in four years. The increase reflects both improved pricing and a more favorable customer mix.
Following the planned reduction of lower-margin Amazon shipments, management outlined a long-term operating “algorithm” – a financial framework intended to gradually improve profitability across UPS’s delivery network.
A central component of this framework is pricing discipline. UPS expects base shipping rates to increase by roughly 3% per year on average through annual rate adjustments and customer contract renegotiations. At the same time, management aims to ensure that costs grow more slowly than revenue on a per-package basis. UPS tracks two key metrics: revenue per piece (RPP), which measures the average revenue generated per shipment, and cost per piece (CPP), which reflects the expense required to transport and deliver that package.
Historically, the company has targeted a spread of roughly 100 basis points between these metrics, meaning revenue per package grows about one percentage point faster than costs. Maintaining this relationship allows operating margins to expand gradually, even if shipment volumes grow modestly.
For 2026, management expects revenue per piece to increase about 4.5% for the full year, supported by pricing actions and a more favorable shipment mix. Growth is expected to be stronger in the first half of the year as the shift away from Amazon continues, before moderating closer to 3% later in the year, consistent with the company’s long-term pricing trend.
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Efficiency Engine
Alongside these pricing changes, UPS is undertaking one of the largest operational restructurings in its history. Management describes the effort as a broad network reconfiguration designed to align the company’s infrastructure with changing shipment volumes and customer mix.
In 2025, UPS generated about $3.5 billion in cost savings through operational changes across its network. The largest reductions came from variable costs tied directly to shipment volumes, as improved route planning, automation, and efficiency initiatives eliminated roughly 26.9 million labor hours. The company also reduced semi-variable costs by adjusting staffing levels, cutting about 48,000 operational roles, including 15,000 seasonal positions. Fixed costs declined as UPS consolidated facilities, closing 195 operating sites, including 93 buildings, well above its initial target of 73 closures. Consolidating operations allows the company to process more packages through larger automated hubs while reducing overhead costs associated with underutilized facilities.
These restructuring efforts will continue in 2026, with management targeting an additional $3 billion in savings through further network optimization, reduced labor hours, and additional facility closures.
Automation is a key driver of these efficiency gains. UPS currently operates 127 automated sorting facilities and plans to add 24 more in 2026, using robotics and advanced systems to process packages faster and more accurately than via manual operations. According to the company, automated buildings operate at roughly 28% lower cost per package than conventional facilities. Currently, about 66.5% of UPS package volume is processed through automated hubs, and management expects that figure to increase to roughly 68% by the end of the year.
Technology is also improving final-stage delivery efficiency. UPS has deployed RFID technology across all U.S. delivery vehicles, allowing packages to be detected automatically during transit, reducing manual scanning and improving delivery accuracy.
Another operational change involves the evolution of UPS’s Ground Saver shipping service, a lower-cost delivery option for less time-sensitive e-commerce shipments. Under the revised structure, UPS continues transporting packages through much of its network but increasingly hands certain shipments to the United States Postal Service for final delivery. Because USPS already operates dense residential delivery routes, this approach lowers costs in less dense neighborhoods.
The transition involves temporary operational adjustments that will create costs during the first half of 2026, but management expects financial benefits to begin emerging in the second half of the year, with full savings of approximately $400 million to $500 million expected by 2027.
Beyond cost efficiency, UPS is expanding its digital shipping platforms to diversify its customer base and increase exposure to higher-margin segments. A key part of this strategy is the Digital Access Program (DAP), which integrates UPS shipping services directly into e-commerce platforms, online marketplaces, and merchant software. This allows businesses to access UPS shipping within the tools they already use to manage sales and fulfillment. DAP revenue has grown rapidly, reaching about $4.1 billion in 2025 as UPS expanded internationally and added additional technology partners.
UPS has also expanded its broader digital portfolio, including Roadie, a same-day delivery platform using a crowdsourced driver network, and Happy Returns, which simplifies product returns for online shoppers. These services generated 24% revenue growth for the full year and accelerated to 27% growth in the fourth quarter.
As a result of these initiatives, shipments from small and medium-sized businesses now account for 31.8% of total U.S. package volume, the highest level in the company’s history. Business-to-business shipments have also increased to 42.3% of U.S. volume, up roughly 250 basis points from the previous year, gradually shifting UPS toward higher-value customers and services.
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Profit Path
Over the past five years, UPS’s revenue and earnings have followed an unusual trajectory shaped largely by the pandemic cycle. The company’s revenues grew at a modest CAGR of about 1%, while EPS expanded at a much faster 33.6%. The divergence reflects the extraordinary surge in parcel demand during the pandemic-driven e-commerce boom in 2020–2021, when global shipping volumes and pricing power for parcel carriers rose sharply. UPS’s revenue briefly exceeded $100 billion in 2022 before normalizing as global trade activity and shipping volumes cooled. EPS peaked during 2021–2022 and later moderated as demand normalized and the company began restructuring its network while deliberately reducing lower-margin shipment volumes.
Despite this normalization phase, UPS delivered solid results in 2025, supported by stable package volumes, disciplined cost control, and improved margins in several business segments. In the fourth quarter of 2025, UPS generated revenue of $24.5 billion, a decline of 3.2% year-over-year, but still above estimates. The revenue decline was primarily driven by lower package volumes, reflecting the company’s strategic reduction in shipments from Amazon, weaker logistics services demand, and some trade-related softness. However, improved pricing helped offset much of the volume pressure as revenue per package increased during the quarter.
The company reported an adjusted operating profit of $2.9 billion, resulting in an operating margin of 11.8%. Profitability was supported by year-over-year margin expansion in the company’s U.S. Domestic Package and Supply Chain Solutions segments, reflecting ongoing efficiency initiatives and improved operating leverage within the network. Adjusted EPS came in at $2.38, exceeding market expectations for the quarter.
Reported results included approximately $238 million in GAAP charges. These consisted primarily of a $137 million non-cash write-off related to the retirement of the company’s MD-11 aircraft fleet, along with $101 million in transformation-related expenses associated with network optimization and operational restructuring efforts. Excluding these items, underlying profitability remained stable, supported by steady shipment activity and cost control measures.
For FY25, UPS generated total revenue of $88.7 billion and adjusted operating profit of $8.7 billion, resulting in an operating margin of 9.8%. Segment performance reflected the company’s diversified logistics platform. The U.S. Domestic Package business generated $4.6 billion in operating profit, up by 1.9% year-over-year, with a margin of 7.7%, while the International Package segment delivered $2.9 billion in operating profit and a margin of 15.8%, reflecting the stronger profitability typically associated with cross-border shipping services. The Supply Chain Solutions segment contributed $1.1 billion in operating profit with a margin of 10.6%.
Cash generation remained a key strength of UPS’s business model. During 2025, the company generated $8.5 billion in operating cash flow and about $5.5 billion in adjusted free cash flow. Capital expenditures totaled $3.7 billion as UPS continued investing in automation, network capacity, and technology infrastructure, while acquisitions accounted for roughly $2 billion.
The company maintains a relatively conservative balance sheet. Its debt-to-EBITDA ratio stands at about 2.4 times, below the sector median, and its long-term debt carries investment-grade credit ratings of “A” from S&P and “A2” from Moody’s. Management aims to keep leverage around 2.5 times EBITDA, a level that supports credit ratings while preserving flexibility for investment and acquisitions. UPS also demonstrates strong profitability metrics, with its ROE ranking among the top 10% in the industry and ROA and ROIC within the top 20%.
Looking ahead, UPS expects consolidated revenue of approximately $89.7 billion in 2026 with an operating margin of around 9.6%. The company anticipates free cash flow of roughly $6.5 billion, supported by capital expenditures of about $3 billion and continued operational efficiency improvements across its global logistics network.
Despite structural improvements, management expects 2026 to follow a “bathtub-shaped” earnings pattern, with weaker results early in the year and recovery in the second half. The first-half performance will be pressured by the final phase of Amazon’s volume reduction, operational changes tied to the Ground Saver transition with the United States Postal Service, and costs associated with retiring older MD-11 cargo aircraft.
UPS has begun retiring its aging MD-11 cargo aircraft. To maintain capacity during the transition, the company has temporarily leased replacement aircraft. These lease costs totaled approximately $50 million in the fourth quarter of 2025 and are expected to reach about $100 million in 2026, with roughly 90% occurring in the first half of the year.
At the same time, UPS is introducing newer Boeing 767 freighters into its fleet. The company plans to add 18 of these aircraft, including 15 in 2026 and the remaining three entering service in 2027. Over time, these aircraft are expected to improve fuel efficiency, reliability, and maintenance costs across the air network.
Because of these temporary pressures, the U.S. Domestic Package segment could see operating margins in the mid-single-digit range during the first quarter, while international operating profit may decline roughly 30% year over year.
International profitability has been affected by shifting global trade patterns. Historically, some of the most profitable shipments moved between China and the United States, but some of this volume has shifted to other global routes that typically generate lower margins.
UPS is adjusting its international logistics network by modifying flight routes, regional capacity, and logistics hubs. For example, the company’s air logistics hub in Vietnam is already operating at about 80% of the capacity originally planned for its first five years, reflecting rising trade flows across Southeast Asia.
Over time, management expects profitability to improve as revenue per package grows faster than delivery costs and continues to target mid-teens operating margins in the International segment.
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Parcel Payouts
UPS has built a long track record of returning capital to shareholders through consistent dividend payments. The company has paid dividends for the past 27 consecutive years and has increased its payout annually for 16 years. Over the past decade, the dividend has grown at a CAGR of about 8.4%, reflecting the company’s strong cash generation and commitment to income investors. Based on adjusted earnings, UPS currently distributes roughly 92% of its profits to shareholders, and the stock offers a dividend yield of about 6.55%, more than five times the average yield of roughly 1.2% in the industrials sector.
Looking ahead, management expects to maintain the current dividend in 2026 while earnings temporarily decline during the company’s ongoing network restructuring. Although the payout ratio is currently elevated at roughly 80% to 90% of earnings, above the company’s long-term target of about 50% to 60%, the company emphasized that the dividend remains a core priority for the business. As operational improvements and efficiency initiatives begin to strengthen profitability over time, management expects the payout ratio to gradually return toward its historical target range, supporting the long-term sustainability of UPS’s dividend for investors.
UPS has also returned capital through share repurchases. In January 2023, the board authorized up to $5 billion in buybacks of Class A and Class B common stock. During 2025, the company repurchased $1 billion of Class B shares under this program. As of December 31, 2025, approximately $1.3 billion remained available under the authorization, although management does not expect additional repurchases during 2026 as the company prioritizes financial flexibility during the restructuring period.
Shares of UPS have declined by roughly 14% over the past year, reflecting a combination of slower parcel volumes, higher labor costs, and the company’s strategic decision to reduce lower-margin shipments from major customers such as Amazon. While these developments have weighed on near-term earnings expectations, they also represent a deliberate effort by the management to improve the quality of shipments moving through the network, strengthen pricing power, and build a more efficient operating structure. The recent flare up in hostilities in the Middle East have pushed up oil prices, adding downward pressure on the stock. However, for long-term investors, these temporary pressures may create a more attractive entry point into a business that continues to generate strong operating cash flow to support its dividend and ongoing investments in automation and logistics infrastructure.
From a valuation perspective, the recent share price weakness has pushed UPS below many of its historical valuation benchmarks. The stock is currently trading at more than a 10% discount to its historical averages based on several commonly used valuation metrics, including non-GAAP trailing and forward price-to-earnings ratios, forward EV-to-EBITDA multiples, as well as forward price-to-book and price-to-cash-flow measures.
A similar pattern appears when UPS is compared with its peers, including FedEx, C.H. Robinson Worldwide, and Expeditors International. Based on non-GAAP trailing and forward price-to-earnings multiples as well as forward EV/EBITDA ratios, UPS currently trades toward the lower end of the valuation range within this peer group. This positioning suggests that the market may already be factoring in much of the near-term uncertainty around shipping volumes and network restructuring, while potentially underestimating the long-term benefits of the company’s operational changes and revenue mix improvements.
Analysts remain broadly optimistic about UPS, citing the company’s strong operating cash flow and ongoing investments in automation and fleet modernization as key drivers of long-term growth. These investments are improving network efficiency and lowering unit costs, which could support gradual margin expansion as shipment volumes stabilize. At the same time, UPS is shifting its revenue mix toward higher-value segments such as digital shipping services and healthcare logistics, which typically generate stronger margins and more stable demand.
Reflecting these factors, Wall Street estimates suggest meaningful upside potential. Consensus price targets imply roughly 17% upside from current levels, while more optimistic projections point to gains of up to 39%. Meanwhile, discounted cash flow analysis indicates that UPS shares may be trading at roughly a 41% discount to intrinsic value, suggesting the stock could offer an attractive opportunity for long-term investors.
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Investing Takeaway
For income-focused investors, United Parcel Service offers a combination of strong cash generation and a long-standing commitment to shareholder payouts. The company’s extensive logistics network, recurring demand from e-commerce and business shipping, and disciplined capital allocation have historically supported consistent dividend payments. While earnings may face temporary pressure as UPS restructures its network and shifts away from lower-margin shipment volumes, these changes are designed to improve profitability and strengthen the long-term earnings base. Management has emphasized that maintaining the dividend remains a core priority during this transition period. As efficiency initiatives, automation investments, and a higher-quality shipment mix begin to support margins, UPS appears well positioned to continue delivering dependable income for long-term dividend investors.
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Dividend Investor Portfolio
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Portfolio News
▣ BlackRock’s (BLK) digital-asset investment products continued to attract strong institutional demand. During the week, the company’s spot Bitcoin ETF recorded roughly $600 million in net inflows, reflecting sustained investor interest in gaining exposure to cryptocurrencies through regulated investment vehicles. The inflows highlight the growing role of exchange-traded funds as a preferred access point for institutional and retail investors seeking exposure to digital assets while benefiting from the transparency, liquidity, and regulatory oversight associated with traditional ETF structures.
▣ ExxonMobil (XOM) announced a significant corporate governance proposal that could reshape its legal and regulatory framework. The company’s board unanimously recommended relocating its legal incorporation from New Jersey to Texas, aligning the company’s legal domicile with its operational headquarters in the Houston metropolitan area.
The proposal will be presented to shareholders for approval at the company’s 2026 annual meeting. Management indicated that the move is intended to better align ExxonMobil’s legal structure with its primary operations while taking advantage of Texas’s business-friendly regulatory environment and specialized business courts. According to the company, this change is expected to provide a more supportive legal framework for its long-term operations, governance, and corporate decision-making.
▣ JPMorgan Chase (JPM) has reportedly marked down the value of certain loans held by private-credit funds and is tightening its lending to the sector, according to a report by the Financial Times. The move affects loans extended to software companies and reduces the amount the bank is willing to lend against those assets in the future.
The decision reflects growing caution toward software-backed lending. The bank’s CEO Jamie Dimon recently indicated that the bank is becoming more conservative when providing financing secured by software assets. Sources familiar with the matter said the adjustment was made proactively to limit credit exposure to private-credit funds.
▣ Honeywell (HON) continued advancing preparations for the planned separation of its aerospace business, which is expected to be completed in 2026. As part of the process, Honeywell Aerospace priced a large $16 billion private debt offering ahead of the planned spin-off from its parent company.
The multi-tranche issuance includes $10 billion in new-money notes and $6 billion in exchange notes, with maturities extending as far as 2066. The financing is intended to capitalize the aerospace unit as a standalone company and provide financial flexibility ahead of its expected public debut in the third quarter of 2026.
At the same time, Honeywell introduced a new high-precision inertial measurement unit, the HGuide i700, designed for unmanned air, land, and sea vehicles operating in environments where traditional navigation signals may be limited or disrupted. The product launch highlights the company’s continued investment in advanced aerospace technologies as it strengthens capabilities within the segment ahead of the planned separation.
▣ During the week, IBM (IBM) announced several initiatives highlighting its continued focus on artificial intelligence, advanced semiconductor research, and quantum computing.
The company partnered with SEI Investments to accelerate enterprise transformation using “agentic AI.” The collaboration combines IBM’s consulting expertise with AI-driven automation to help organizations modernize operations, improve productivity, and streamline decision-making processes.
IBM also expanded its semiconductor research through a collaboration with Lam Research. The companies aim to develop new materials and manufacturing processes that could enable sub-1-nanometer chip technologies, supporting future artificial intelligence and high-performance computing workloads.
In addition, IBM introduced a blueprint for quantum-centric supercomputing, which integrates quantum processors with classical computing systems. The approach is designed to make quantum computing more practical for real-world applications such as drug discovery, advanced simulations, and complex optimization problems.
▣ Kroger (KR) announced a dividend of $0.35 per share, payable on June 1, with an ex-dividend date of May 15.
▣ The ex-dividend date for Philip Morris (PM) is March 19, with the dividend expected to be paid on April 13, 2026.
▣ The ex-dividend date for VICI Properties (VICI) is March 19, with the dividend expected to be paid on April 09, 2026.
Recent Trades
None at the moment, although we are considering adding a stock to our portfolio when the market conditions allow for an attractive entry point. Stay tuned.
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Portfolio Attributes
| Dividend Portfolio Yield |
Expected Dividend Growth | Expected Annual Income |
| 3.97% | +5.97% | $6,139.13 |
| Yield-on-Cost Adjusted, Weighted |
Average Analyst 12-Month Growth Outlook | 10K Per Stock at the Time of Purchase |
Current Portfolio
| Name | EX-Dividend Date | Payment Date | Yield on Cost | Annual DPS |
| Automatic Data Processing (ADP) | Jun 15, 2026 | Jul 01, 2026 | 2.46% | $6.80 |
| Amgen (AMGN) | May 15, 2026 | Jun 05, 2026 | 3.27% | $10.08 |
| BlackRock (BLK) | Jun 05, 2026 | Jun 23, 2026 | 2.61% | $22.92 |
| Bank of Nova Scotia (BNS) | Apr 01, 2026 | Apr 28, 2026 | 5.98% | $3.21 |
| EOG Resources (EOG) | Apr 16, 2026 | Apr 30, 2026 | 3.06% | $4.08 |
| ExxonMobil (XOM) | May 15, 2026 | Jun 10, 2026 | 3.64% | $4.12 |
| Honeywell International (HON) | May 18, 2026 | Jun 08, 2026 | 2.39% | $4.76 |
| IBM (IBM) | May 12, 2026 | Jun 10, 2026 | 3.14% | $6.72 |
| JPMorgan Chase (JPM) | Apr 07, 2026 | Apr 30, 2026 | 3.43% | $6.00 |
| Kroger (KR) | May 15, 2026 | Jun 01, 2026 | 3.08% | $1.40 |
| Cisco Systems (CSCO) | Apr 07, 2026 | Apr 28, 2026 | 2.22% | $1.68 |
| PepsiCo (PEP) | Jun 05, 2026 | Jun 26, 2026 | 3.8% | $5.69 |
| Philip Morris (PM) | Jun 29, 2026 | Jul 15, 2026 | 6.06% | $5.88 |
| Qualcomm (QCOM) | Jun 05, 2026 | Jun 26, 2026 | 2.36% | $3.56 |
| VICI Properties (VICI) | Jun 18, 2026 | Jul 10, 2026 | 5.22% | $1.8 |
| Verizon (VZ) | Apr 13, 2026 | May 05, 2026 | 6.09% | $2.76 |
NameEX-Dividend DatePayment DateYield on Cost Annual DPS
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Click here for more stock market analysis from TipRanks Macro & Markets research analyst Yulia Vaiman
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Disclaimer
The information contained in this article represents the views and opinions of the writer only, and not the views or opinions of TipRanks or its affiliates and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy, or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment, and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices, or performance.
