By Colin Kellaher

United Parcel Service Inc. on Tuesday said its board raised the quarterly dividend by 6.6%, to $1.62 from $1.52, and approved a new $5 billion stock-buyback program.

The new quarterly payout, equal to $6.48 a year, represents an annual yield of about 3.66% based on Monday's closing price of $176.97, up from 3.44%.

The Atlanta package-delivery giant said the increased dividend is payable March 10 to shareholders of record Feb. 21.

UPS, which has nearly 730 million shares outstanding and sports a market capitalization of roughly $157.5 billion, said the new $5 billion repurchase replaces its prior authorization, adding that it expects to buy back about $3 billion in stock this year in addition to shelling out around $5.4 billion in dividend payments.

UPS returned $8.6 billion of cash to shareholders through dividends and stock buybacks in 2022.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 31, 2023 06:34 ET (11:34 GMT)

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