UPS has faced challenges, leading to lower revenue and profitability, with a dividend yield of 6.7%. Despite a drop in revenue and earnings, UPS is making improvements by reducing Amazon exposure, cutting shipping volumes, and focusing on higher-margin customers.

The company aims to deliver $3.5 billion in annual expense reductions and achieved $2.2 billion through Q3, resulting in a U.S. operating margin increase. While cash flow has declined and long-term debt increased, UPS generated $2.4 billion in operating cash flow and $2 billion in free cash flow in Q3.

UPS’s strategy to cut costs and shift toward higher-margin customers is paying off, with improved cash flow in Q3. The company strengthened its balance sheet through asset sales and expects additional cost savings, positioning it well to continue paying dividends, a core principle for UPS.

Read more at Yahoo Finance: Is It Time to Buy UPS for Its 6.7%-Yielding Dividend?