From Nasdaq: 2025-06-08 05:31:00

Shares of UPS (NYSE: UPS) are down 24% in the last six months, with a longer downturn since 2022. Despite the price drop, UPS is now a bargain stock with a record-breaking dividend yield.

While UPS faces financial challenges in 2025 due to a fading e-commerce boom and trade tensions, the company remains profitable, converting 92% of net income into free cash flow.

To boost profitability, UPS plans to cut low-margin Amazon shipments by half in 2026, closing shipping centers and reducing operating hours. This proactive move aims to solidify UPS’s bottom-line profits.

Investing in UPS for the long term may be a smart move, with a 6.7% dividend yield, low stock valuations, and potential for dividend increases in 2026 and beyond. UPS stock is currently a great long-term investment opportunity.

Consideration should be given before investing in UPS, as it was not included in the Motley Fool’s list of the 10 best stocks to buy now. The potential for high returns in other stocks may outweigh the benefits of investing in UPS.



Read more at Nasdaq: 1 Magnificent S&P 500 Dividend Stock Down 24% to Buy and Hold Forever