UPS 2012 forward PE = 14.9 FedEx 2012 forward PE = 11.4 (or 12.3 after reducing 2012 EPS by the annual dividend)
So, a gap still exists between the forward PEs of UPS and FedEx.
Also FDX is 16% off its 52-week high while UPS is 8% off its 52-week high. Conversely, FDX is 30% off its 52-week low and UPS is 17% off its 52-week low. So, more price volatility with FDX than UPS which also means more opportunity for investors.
Also dividends are good for sure but not one you can invest them for more. FDX is investing it in more growth which is actually more attractive since they have had better growth by quite a bit over the last 10 years.