UPS shares have slumped sharply after weak earnings and management refused to set full-year guidance. “UPS shares fell 10.6 % to $90.84 after reporting weaker‑than‑expected second‑quarter earnings.”
https://www.barrons.com/articles/ups-stock-price-earnings-fae0074e
CEO Carol Tomé said, “UPS is rock‑solid strong and so is our dividend.”
https://www.barrons.com/articles/ups-stock-price-earnings-fae0074e
Even so, UPS now yields over 7 % due to the stock drop, making it part of a rare S & P 500 club of high‑yielders. “UPS now yields 7.3 % with an annual dividend of $6.56 per share.”
https://www.barrons.com/articles/ups-stock-dividend-yield-sp-500-a18ce93d
Analysts warn earnings may not support the payments long term. “UPS’s dividend is $1.64 per quarter… earnings are not strong enough to support the dividend.”
https://www.nasdaq.com/articles/upss-75-yielding-dividend-still-safe
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The stock drop drives yield high without any dividend rise
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Dividend payout matches nearly all projected earnings
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Free cash flow forecast is weaker than the payment level
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Market signals doubt about dividend safety despite CEO claims
UPS acts like the economy has collapsed, but it still pays a 7.75 % yield, making it an accidental high‑yielder. That contrast suggests possible trouble ahead if profits dip further. Investors should watch if UPS really can sustain this dividend or if it risks becoming a dividend trap.
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