14 High Yield Dividend Stocks with Sustainable Payouts

2. United Parcel Service, Inc. (NYSE:UPS)

Dividend Yield as of January 29: 6.25%

On January 28, Bernstein analyst David Vernon raised his price target on United Parcel Service, Inc. (NYSE:UPS) to $128 from $125 and kept an Outperform rating on the stock. The firm pointed to very strong Q4 2025 results. UPS guided 2026 results largely in line with expectations, supported by better-than-expected revenue and weaker-than-expected margins. Bernstein said the strength of the fourth-quarter beat, combined with margin trends exiting the year, should be enough to offset the softer margin outlook.

UPS has also taken visible steps to reshape its cost base. The company recently said it plans to eliminate up to 30,000 jobs and close another 24 facilities in 2026. The move comes as UPS continues to scale back deliveries for Amazon, part of a broader shift toward higher-margin business. In January last year, UPS said it would accelerate efforts to cut millions of low-profit deliveries tied to the online retailer, its largest customer and an increasingly direct competitor. Management has previously described that business as “extraordinarily dilutive” to margins. The changes come against a backdrop of persistently soft demand across the delivery industry, affecting UPS and peers such as FedEx.

The restructuring follows a difficult 2025. During the year, UPS eliminated 48,000 jobs, launched buyout programs for drivers, and closed operations at 93 buildings as Amazon volumes declined. The planned reductions for this year will be handled through attrition and another buyout offer for full-time drivers. Layoffs are not expected, according to Chief Financial Officer Brian Dykes.UPS operates with a largely unionized workforce. Dykes said many of the job cuts will occur when positions remain unfilled, as part-time employees leave. The company expects revenue to decline in the first half of the year as it completes the Amazon “glide-down.” Revenue is expected to improve sequentially in the second half once the transition is complete.

United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers in more than 200 countries and territories around the world.