United Parcel Service, Inc. (NYSE:UPS) is included among the many 13 Greatest Dividend Shares Paying Over 6%.
On January 9, Bernstein analyst David Vernon raised his worth goal on United Parcel Service, Inc. (NYSE:UPS) to $125 from $122 and stored an Outperform ranking. Vernon stated considerations across the dividend look overblown, particularly as UPS works to enhance margins. He additionally expects future development to lean extra towards higher-return markets.
UPS shares fell practically 20% in 2025, and that drop has pushed the dividend yield to an unusually excessive 6%. It has additionally lifted the dividend payout ratio to roughly 98%. On paper, that leaves little room if earnings don’t enhance, which is why dividend threat has grow to be such an enormous speaking level.
Nonetheless, United Parcel Service, Inc. (NYSE:UPS) has been clear about the place it stands. In a November 6 press launch saying the most recent dividend, the corporate stated:
“Dedication to the dividend is certainly one of UPS’s core rules and a trademark of the corporate’s monetary energy. UPS has both maintained or elevated its dividend every year since going public in 1999.”
The subsequent step is execution. UPS is resizing and reshaping its enterprise, together with transferring away from lower-margin Amazon quantity. If that transition holds, the payout ratio ought to start to ease as earnings rebuild. Analysts presently count on earnings per share to rise about 4% in 2026 and 11% in 2027, assuming the corporate follows by on its plan.
United Parcel Service, Inc. (NYSE: UPS) supplies built-in logistics and supply providers to prospects throughout greater than 200 international locations and territories.
Whereas we acknowledge the potential of UPS as an funding, we consider sure AI shares provide higher upside potential and carry much less draw back threat. In the event you’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
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Disclosure: None.