UPS' dividend looks safe for now, but paying it may be hampering the company's growth plans.UPS (UPS +4.06%) surprised the market with its full-year 2026 guidance for $6.5 billion in free cash flow (FCF). It's a figure that appears to secure the company's $5.4 billion dividend payment and will reassure passive-income-seeking investors who bought the stock for its dividend yield (currently 6.3%). The guidance came in significantly above the Wall Street analyst consensus going into the earnings. Does it secur ...

If you're an income investor, the great news for UPS is probably all that will matter.I've been making the case for a while that United Parcel Service (UPS 3.26%) was poised to be a great turnaround story. It's too soon for me to be able to brag that I was right. However, UPS stock has risen around 25% over the last four months – an encouraging trend.UPS reported its 2025 full-year and fourth-quarter results on Tuesday, Jan. 27, 2026. The company delivered good news, bad news, and great news for investors. ...

On Tuesday, United Parcel Service, Inc. (NYSE:UPS) reported fourth-quarter 2025 revenue of $24.5 billion and adjusted EPS of $2.38, beating the $2.20 estimate.For 2026, UPS forecasts revenue of about $89.7 billion, above the $87.938 billion analyst estimate, and a non-GAAP adjusted operating margin of about 9.6%.Analyst TakeB of A Securities analyst Ken Hoexter raised the price forecast for United Parcel Service from $114.00 to $118.00, while keeping a Neutral rating.The analyst writes that UPS reported qua ...

UPS delivery truck on city street, symbolizing UPS stock rebound and improving outlook entering 2026. Key Points United Parcel Service has returned to growth sooner than expected, and its stock price looks to be in rebound mode. An ample capital return is reliable in 2026, with distributions expected to increase.  Analysts and institutional data align with a market bottom and reversal, and trends will likely strengthen as 2026 progresses. Interested in United Parcel Service, Inc.? Here are five stocks ...

UPS (NYSE: UPS) delivered a decent set of fourth-quarter results on Tuesday and announced a series of layoffs. Investors reacted by trading the logistics giant's shares marginally higher on the day, with their 0.2% gain slightly lagging the bellwether S&P 500 index's 0.4% increase. A bullish reaction to fundamental declines For its final frame of 2025, UPS booked total revenue of just under $24.5 billion, a 3% decline from the fourth quarter of 2024. Its operating profit not in accordance with generally a ...

UPS has been working to right-size its business after reducing volumes from Amazon.com. - Justin Sullivan/Getty Images UPS expects to cut an additional 30,000 operational positions this year, the company said Tuesday, as it continues with its restructuring efforts. The latest round of cuts comes as the company reported higher quarterly profit and guided for slightly higher revenue in the coming year. The shipper eliminated 48,000 positions in 2025, comprising 14,000 management positions and 34,000 jobs i ...

Core Viewpoint - United Parcel Service (UPS) is undergoing a significant business turnaround after experiencing a decline in stock value, with early signs of improvement in its operations and financial metrics [1][6]. Group 1: Business Operations - UPS operates a complex, capital-intensive package delivery service, which includes a vast network of retail stores, sorting and distribution facilities, and a large fleet of delivery vehicles [2]. - The company has been focusing on streamlining operations and prioritizing more profitable customers, which includes reducing reliance on Amazon, a key customer with low profit margins [4][5]. Group 2: Financial Performance - In the second quarter of 2025, UPS reported a 5.5% increase in revenue per piece in the U.S. market, despite a 0.8% decline in overall revenue for that division [7]. - The third quarter showed further improvement, with revenue per piece in the U.S. jumping 9.8% while overall revenue fell 2.6%, and the adjusted operating margin improved by 110 basis points year over year [8]. Group 3: Market Reaction - UPS's share price has increased by 24% over the past three months, indicating that investors are optimistic about the company's turnaround efforts [9]. - The current stock price is around $107.98, with a market capitalization of $92 billion and a dividend yield of 6.08%, although the dividend payout ratio exceeds 100% [8][10].

Core Viewpoint - Investing in high-yielding dividend stocks can provide extra cash flow for reinvestment or daily expenses [1] Group 1: United Parcel Service (UPS) - UPS has experienced a decline of over 17% in value this year due to tariffs and poor economic conditions affecting global trade [4] - The company has announced 48,000 job cuts to improve its financial performance amidst current challenges, with free cash flow reaching at least $1.4 billion in three of the past quarters, sufficient to cover dividend payments [5] - UPS offers a high dividend yield of 6.1%, significantly above the S&P 500 average of 1.1%, with a potential annual dividend income of approximately $370 from a $6,000 investment [6] Group 2: Enbridge - Enbridge provides a dividend yield of 5.8%, slightly lower than UPS, but is recognized for long-term stability and consistent dividend growth, having raised its quarterly dividend by 3% for the 31st consecutive year [7] - The company benefits from stable earnings due to long-term contracts and is not highly vulnerable to fluctuating commodity prices, with distributable cash flow totaling CA$9.2 billion in the first nine months of 2025, up from CA$8.9 billion in the same period last year [8]

Group 1 - United Parcel Service (UPS) stock has decreased by 53% from its 2022 highs, but has seen a nearly 30% increase over the past three months, with a dividend yield of 6.1% [1] - UPS is one of the largest package delivery companies in the United States, requiring significant infrastructure for successful operations [2] - The company operates a vast network of distribution and sorting facilities, along with transportation assets, supported by a complex computer system for package tracking [3] Group 2 - UPS's reliable and quick package delivery service is a significant achievement, making it difficult for competitors to dislodge the company [4] - Amazon is a crucial customer for UPS, but the low profit margins from this business have led UPS to reduce the number of Amazon packages it handles as part of a larger overhaul focusing on higher-margin businesses [5] - Wall Street's concerns about UPS are reflected in the stock price decline since 2022, as the turnaround efforts involve increased spending and lower revenue [6] - UPS is working to streamline operations and improve profitability, with early signs indicating that the turnaround efforts are beginning to take effect [7]

Core Viewpoint - UPS has a promising long-term growth strategy but faces questions regarding its near-term capital allocation strategy [1] Group 1: Growth Strategy - Under CEO Carol Tomé, UPS is focusing on targeted end markets and deliveries rather than merely increasing delivery volume [2] - The strategy includes a plan to voluntarily reduce low- or negative-margin Amazon deliveries by 50% from early 2025 to mid-2026 [3] - UPS aims to grow in specific markets such as small and medium-sized businesses (SMBs), healthcare, and business-to-business e-commerce, while investing in technology to enhance productivity [5] Group 2: Financial Performance and Risks - UPS has missed its initial full-year guidance for three consecutive years due to weaker-than-expected U.S. delivery volumes [6] - The company is facing deteriorating trading conditions, with analysts suggesting it may not generate sufficient free cash flow to cover its nearly $5.5 billion dividend payout [7] - The impact of Trump tariffs on SMBs has not fully materialized, potentially affecting UPS's performance [7] Group 3: Market Position - Despite UPS's long-term strategy being sound, there are near-term risks associated with earnings and limited dividend coverage [8] - FedEx has outperformed UPS in stock price performance, indicating competitive pressures in the package delivery market [1]