Should You Buy United Parcel Service While It's Below $120?
Source: Motley Fool
2026-03-16 10:35:00 ET
United Parcel Service (NYSE: UPS) is one of the world's largest package delivery companies. It has a network that would be difficult, if not impossible, to replace. Add in a lofty 6.5% dividend yield, and you can see why income investors would be interested in buying the stock while it is trading near $100 per share. Is it worth it?
While UPS has an attractive yield, its payout ratio is rather unattractive. At the end of 2025, the trailing 12-month dividend payout ratio was over 100%. That materially increases the risk of a dividend cut, given that it would require all of the company's earnings to cover just the dividend.
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United Parcel Service Inc.
NASDAQ: UPS
UPS Trading
0.26% G/L:
$98.375 Last:
1,070,223 Volume:
$99.275 Open:
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