The Rokslide Stock Traders Thread

[eddielasvegas]

I buy dividend stocks. Bought UPS while it is down. Any insights into UPS?

I looked at UPS over a year ago when it was ~$125/sh. Glad I passed on that given its price today.

I had no idea it had dropped that much. It's DIV APY is 7.5%, which is attractive.

What's not attractive is its DPR of about 90%. Very scary and not worth it IMHO even if the C-Suite pukes say they are going to right the ship.


Eddie

 

[2531usmc]

Market technicals, P/E ratio, blah blah none of it matters anymore. Can’t time the market either way, all we need to know is the market is designed, encouraged, and will continue to go up long term.

The market will continue to go up long term. But as the long term plays out, there will be times with blood in the street. Those are the times real money is made.

 

[2531usmc]

I looked at UPS over a year ago when it was ~$125/sh. Glad I passed on that given its price today.

I had no idea it had dropped that much. It's DIV APY is 7.5%, which is attractive.

What's not attractive is its DPR of about 90%. Very scary and not worth it IMHO even if the C-Suite pukes say they are going to right the ship.


Eddie

The April strike and settlement with the teamsters will hamstring UPS for years to come.

 

[eddielasvegas]

The April strike and settlement with the teamsters will hamstring UPS for years to come.

I did forget about that @2531usmc . Now that you reminded me, I do remember that senior drivers will make ~$170k/year.

That's a lot of money to deliver packages, but I'm reminded of my Teamsters job in the 80s working for BUD. All BUD hourly employees were union and made $35k-$60k per year with OT and top tier benefits. BUD was king then and OT was always available.

Anyhoo, BUD was always at, or near the top, for highest profit per barrel of beer. That stat always stuck in my mind all these years as we were well paid for being unskilled labor.

Of course, 40+ years later and UPS is a different business, but my experience shows it's possible to pay employees well and still keep the stockholders and markets happy.


Eddie

 

[2531usmc]

The problem is now the $170k/yr UPS driver is competing against gig workers making minimum wage + gas mileage.

As a former steelworker, I’m a huge supporter of well paid employees having a decent benefit package. That’s what holds the middle class together

But the teamsters pushed this too far. Too many outfits and too many people in that business space….

 

[eddielasvegas]

The problem is now the $170k/yr UPS driver is competing against gig workers making minimum wage + gas mileage.

As a former steelworker, I’m a huge supporter of well paid employees having a decent benefit package. That’s what holds the middle class together

But the teamsters pushed this too far. Too many outfits and too many people in that business space….

Like almost everything in life, god (is it the devil) is in the details. It seems the $170k number is at the end of the contract 2028 (me thinks) but it also includes benefits. The actual pay is about $50/hr in 2028.

I'm going to watch UPS for a few weeks and see where it goes. I just might dip my toe in for a few shares due to the high DY and that it employes beaucoup Americans at a good wage.


Eddie