UPS is undergoing a major transformation, shifting away from high-volume, low-margin e-commerce customers like Amazon. Despite a 7% dividend yield, investors are split on the stock’s future. Q3 volume with Amazon was down 21%, and 93 buildings were closed for cost reduction. UPS CEO Carol Tomé highlighted a 9.8% growth in U.S. revenue per piece. The stock is down 25% year-to-date, hitting a five-year low. UPS is in the early stages of its overhaul, with a focus on higher-margin categories. The high dividend yield is both a risk and potential reward for investors.

UPS has a record-high dividend yield of 7%, with a dividend payout ratio of 98%. The company has maintained or increased its dividend since going public in 1999. Analysts estimate EPS growth of 4% and 11% in 2026 and 2027. UPS is reshaping its business to increase sales and profits. Investors should consider the risks and rewards of the dividend yield. The Motley Fool Stock Advisor team did not include UPS in their list of the top 10 stocks to buy now.

Investors are watching closely as UPS navigates its strategic overhaul and stock performance. The company is reshaping its network to focus on higher-margin services. The dividend yield is at a record high of 7%, creating both risks and potential rewards for investors. UPS aims to improve future economics through its current transformation. The company’s commitment to dividends remains strong despite financial challenges.

Read more at Nasdaq: 2 Things Every UPS Investor Needs to Know