The United Parcel Service (NYSE: UPS – $95.07) Board of Directors declared a regular quarterly dividend of $0.67 per share, up $0.05 or 8.1%, from $0.62 per share, on all outstanding Class A and Class B shares. The dividend increase is in recognition of the company’s solid cash flow performance and commitment to delivering shareholder value, according to the company’s news release. “During 2013, UPS generated $5.3 billion in free cash flow, enabling reinvestment for growth,” said Scott Davis, UPS chairman and CEO. “In addition, we increased our shareholder distributions, paying dividends of $2.3 billion and repurchased more than $3.8 billion in UPS shares. This latest dividend increase shows that the UPS business model consistently generates improved returns to shareowners.” While the shares may not outpace the market over the next twelve months, on a long-term basis UPS offers decent total returns on a risk-adjusted basis and can be held in a well-balanced conservative portfolio.