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UPS is showing signs of a turnaround, with revenue declining by nearly 4% year-over-year due to planned decreases in Amazon package volume and business divestitures. Despite this, revenue per piece grew by 10%, indicating a focus on higher margin volumes. UPS expects to reduce expenses by $3.5 billion this year by shedding lower margin volumes and becoming more efficient.
Chevron had a strong quarter, with record production and adjusted free cash flow of $7 billion. The company returned $6 billion to shareholders through dividends and buybacks, totaling $78 billion over the past three years. Chevron is focused on capital allocation, returning significant amounts to shareholders while aiming for double-digit growth in free cash flow through 2030.
Hasbro is in a multi-year turnaround plan and has challenges in the consumer market. With a payout ratio of 75% of free cash flow towards dividends, there may be better uses for capital at the moment. The dividend yield is around 3.6%, and the focus is on improving the business before increasing the dividend.
CF Industries is a fertilizer company with strong free cash flow and a low dividend payout ratio. While management has historically increased dividends, the decision to raise the dividend in 2026 will likely depend on commodity prices. The company may prioritize share buybacks over dividend increases in the near term.
Read more at Nasdaq: 3 Non-AI Stocks to Buy: MRK, UPS, CVX