UPS may benefit from cutting dividend to support growth and cash flow, positive.

From Nasdaq: 2025-05-24 04:33:00

UPS stock is a good buy, especially if the dividend is cut to support cash flow and growth opportunities. Management’s $5.7 billion free cash flow estimate for 2025 may be impacted by global economic issues. UPS plans to reduce low-margin deliveries for Amazon and invest in automation and smart facilities to increase productivity. Cutting the dividend could free up resources for acquisitions and growth plans, improving return on equity. Investors may benefit more from UPS reinvesting in the business than paying out a high percentage of earnings in dividends.

Consider investing in UPS for long-term growth potential, as cutting the dividend may reset market expectations positively. The Motley Fool’s Stock Advisor team recommends 10 other stocks for investors to buy now, with the potential for significant returns. Past recommendations like Netflix and Nvidia have shown impressive returns, outperforming the S&P 500. Join Stock Advisor for access to their latest top 10 list and investment insights.



Read more at Nasdaq: Here’s Why UPS Should Cut Its Dividend