United Parcel Service (NYSE: UPS) has a high 6.8% dividend yield but a dividend payout ratio over 100%, shifting the stock from a dividend play to a turnaround opportunity. Despite being down over 50% from its peak, UPS offers value with its essential package delivery infrastructure and attractive valuation metrics.

UPS’ stock appears cheap with price-to-sales, price-to-earnings, and price-to-book ratios below historical averages. The high dividend yield suggests a value price, but the dividend could be at risk as UPS undergoes a business reset. Early signs of a turnaround include increased revenue per piece in the U.S. market in recent quarters.

UPS is at an inflection point, showing early signs of positive results from its restructuring efforts. While the turnaround is ongoing, aggressive investors may find the stock attractive now before a potential rally. Investors should consider the potential for long-term growth rather than immediate income from dividends.

Read more at Nasdaq: 3 Reasons to Buy United Parcel Service Stock Like There’s No Tomorrow