United Parcel ServiceĀ (NYSE:UPS) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons he's holding on to United Parcel Service's stock despite the 26% rise since he bought those shares a little more than a year ago.

Summary:

  • Reasonable valuation, with a market cap in line with a fair-value estimate.
  • Healthier balance sheet, with a debt-to-equity ratio down to around 1.7.
  • Covered and growing dividend with a 58% payout ratio and a decent trend of dividend hikes.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

Chuck Saletta owns shares of United Parcel Service. The Motley Fool recommends United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.