Core Viewpoint - United Parcel Service, Inc. (UPS) is facing scrutiny due to its high dividend yield of 7.76%, which raises concerns about sustainability amid potential economic slowdowns [1][2]. Company Overview - UPS provides a range of package delivery and logistics solutions, including express and ground shipping, international freight forwarding, customs brokerage, and specialized services [2]. Dividend Concerns - The high dividend yield of 7.76% is viewed as a red flag, suggesting that the market may not trust the sustainability of the dividend, despite management's assurances [1][2]. - Jim Cramer expressed that the high yield could indicate a potential need for UPS to cut the dividend if a real economic slowdown occurs [1]. Investment Alternatives - While UPS has potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk [2].

United Parcel Service, Inc. (NYSE:UPS) is one of the stocks Jim Cramer weighed in on. A caller asked about the stock and mentioned that they have held it for three years, and it has declined significantly over the past year despite offering a dividend yield of over 6%. Cramer stated: “I am worried about United Parcel. I’ll tell you why. It’s down 33% for the year. Because when I see a yield of 7.8%, it worries me because there’s not a lot of yields in the S&P that are that high. The highest yielders tend ...