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 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.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.