UPS’s 7.5%-Yielding Dividend Under Scrutiny as Stock Slides

Logistics giant UPS, with its dividend yield soaring to 7.5%, faces mounting skepticism from investors. The yield, far exceeding the market average of 1.2%, reflects a stock price that has tumbled more than 30% this year. Such a high yield often signals market doubts about sustainability—raising the question of whether this is a hidden gem or a payout in peril.

Second-quarter earnings revealed mixed signals. Domestic revenue dipped marginally to $14.1 billion, while international revenue climbed 3% to $4.5 billion. Yet diluted EPS fell to $1.51 from $1.65 year-over-year, stoking concerns about future profitability amid trade tensions and tariffs. The market’s bearish stance suggests deeper fears about UPS’s ability to maintain its dividend if macroeconomic headwinds persist.