United Parcel Service (NYSE:UPS) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta gives three reasons why he's considering selling it if it rises above $100 per share.
To summarize those three reasons:
- Its balance sheet leverage has grown due to pension-plan funding.
- Its market capitalization has grown past Chuck's fair-value estimate.
- Its ability to aggressively raise its dividends in the future may be at risk from that additional leverage.
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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.