The Board of Directors of UPS has increased its quarterly dividend to $0.42 per share from $0.38 per share on all outstanding Class A and Class B shares. Management cited its confidence in the company's financial position and prospects for growth.

UPS has increased its dividend five times in the past four years, doubling the quarterly payout from the $0.21 per share declared in February 2003. UPS has either increased or maintained its dividend every year for more than three decades.

The Board also voted to increase to $2 billion its authorization for the repurchase of Class A and Class B shares.