So, you’re looking for income. Understandable. Most of us are. Here are a couple of names. United Parcel Service, UPS. And Enterprise Products Partners, EPD. If you happen to own either, doubling down isn’t the worst idea in the world. It’s just… a choice. Like deciding what color socks to wear. So it goes.
UPS: The Attempt at Reinvention
UPS is trying to be something new. A lot of companies try that. They cut people, close old buildings, buy shiny new machines. It costs money, naturally. And sometimes, revenue goes down when you decide to ignore the customers who barely paid anything anyway. Quarterly reports aren’t pretty. But, there’s a glimmer. A tiny spark. Like a firefly in a hurricane.
They’re making a bit more money on each package, even though they’re shipping fewer of them. That’s what you’d expect, really. If you’re trying to be smaller, more profitable. Management thinks things will turn around in 2026. The second half of the year, specifically. They always have a date. A hopeful date. The dividend is a hefty 6.7%. They say they’ll keep paying it. For now. The payout ratio is… enthusiastic. Around 100%. That’s a tightrope walk. A perfectly reasonable tightrope walk, in a universe filled with unreasonable things.
Enterprise: Moving Oil, Not Wishing For It
Oil prices jump around like a nervous chihuahua. But Enterprise Products Partners doesn’t really care. They charge a fee for moving the stuff. Pipelines, mostly. A tollbooth on the energy highway. That’s a solid business. It generates a 5.8% yield. Not glamorous. But dependable. Like a rusty wrench.
They’ve increased the distribution every year for 27 years. Regardless of what oil is doing. That’s a long time. Longer than most marriages, probably. It shows a commitment to returning value. And a certain stubbornness. They covered the distribution 1.7 times last year. The balance sheet is… well, it’s rated investment grade. Meaning it’s unlikely to vanish in a puff of smoke. It’s a rock. A slow-moving, income-generating rock.
The downside? It’s slow. It grows gradually. New pipelines take time and money. It’s not a get-rich-quick scheme. It’s a buy-and-hold situation. The yield will likely be the bulk of your return. Which is fine. It’s just… not exciting. But then, most things aren’t, if you think about it. So it goes.
Different Strokes for Different Folks
UPS is for those who like a little risk. A turnaround story. If they’re right about 2026, you might get in before things really improve. Enterprise is for those who prefer boring. Consistent income. It’s not affected by the daily oil price theater. If you’re drawn to energy because it’s in the news, Enterprise is a quieter option. A less frantic option. In a world that’s already frantic enough.
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2026-03-17 18:23