UPS Dividend Yield Hits Record High Amid Stock Decline
United Parcel Service (UPS) has emerged as one of the highest-yielding stocks in the S&P 500, with its dividend yield reaching an all-time high of 7.6%. The stock has plummeted 31.3% year-to-date and 47.7% over three years, reflecting broader market skepticism.
The company's aggressive expansion during the pandemic, aimed at capturing sustained growth in business-to-consumer deliveries, backfired as consumer spending shifted toward services. Inflation and cost-of-living pressures further dented demand for discretionary goods.
UPS is now pivoting toward higher-margin deliveries, including a planned 50% reduction in package volumes from Amazon—its largest customer—by June 2026. The strategy aims to sacrifice revenue for improved profitability, though its success remains uncertain.
