On Monday, the S&P 500 went positive for the year to top off a 45% surge from its 52-week low on March 23. While it’s been a good ride up, many investors are wondering where to go from here.
Here are three top industrial stocks capable of overcoming setbacks from COVID-19, and growing during an economic recovery.
United Parcel Service
United Parcel Service (NYSE:UPS) is one of the largest and most well-known transportation stocks. The company’s global supply chain of integrated services by land, sea, and sky also makes UPS one of the top logistics companies. Its healthcare logistics business has been growing “in coordination with the President’s Coronavirus Taskforce” as time-sensitive information, trials, specimens, medical devices, N95 masks, respirators, and more are transported safely and securely to areas of need.
Despite this growth, UPS suspended its share buyback program in part as a result of slowing business-to-business volume. It also reduced 2020 CapEx by $1 billion and withdrew its 2020 guidance.
Given UPS’s international exposure, it makes sense that the company would take the necessary precautions to ensure it doesn’t spread itself too thin if the pandemic persists for an extended period of time. However, it’s unlikely UPS’s preventative measures would mean a cut to its dividend. The company stated that its dividend “remains a high priority and is a hallmark of our financial strength.”