Wondering If UPS’ 6.7%-Yielding Dividend Is Sustainable? Here’s What You Need to Know.

From Nasdaq: 2025-06-02 04:44:00

Recent articles suggest that United Parcel Service (NYSE: UPS) should cut its dividend to create more shareholder value. However, many income investors may not like this idea. UPS’ dividend payout ratio is slightly over 95%, based on earnings, but its free cash flow payout ratio is 90%. UPS’ decision to reduce Amazon shipping volume and improve efficiency could help sustain its dividend. Additionally, recent court rulings on tariffs may benefit UPS.

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