Why I Just Bought This Badly Beaten-Down, 6.6%-Yielding Dividend Stock and Plan to Buy Even More
From Nasdaq: 2025-06-11 04:34:00
UPS (NYSE: UPS) has struggled due to tariffs, slowing growth, and low margins from Amazon (NASDAQ: AMZN), causing revenue and cash flow issues, leading to a 50% stock slump. The dividend yield is now 6.6%, attracting income-focused investors seeking a turnaround.
Despite challenges, UPS aims to boost financial results and share price. Revenue fell by 0.7% in Q1 to $21.5 billion, with earnings up 4.2% per share. The company plans to cut $3.5 billion in costs and focus on growing profitable business lines outside of Amazon.
UPS plans to reduce its relationship with Amazon by over 50% to improve profitability. It will cut back on less profitable business, reduce costs by $3.5 billion, and focus on growing healthcare logistics and other profitable volumes to increase margins and cash flow.
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