Is United Parcel Service (UPS) the Best Shipping Dividend Stock for Your Portfolio?

United Parcel Service, Inc. (NYSE:UPS) is included among the 10 Best Shipping Stocks with Dividends.

Is United Parcel Service (UPS) the Best Shipping Dividend Stock for Your Portfolio?

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping and supply chain management company. The company plays a vital role in the global transport system and is expected to recover over time as international trade patterns stabilize.

United Parcel Service, Inc. (NYSE:UPS) has a strong cash position. In its recently announced earnings for the second quarter of 2025, UPS reported an operating cash flow of $2.66 billion, and its free cash flow came in at $742 million.

United Parcel Service, Inc. (NYSE:UPS) also provided a bright outlook for its dividend payments. For 2025, the company expects its payouts to be around $5.5 billion. The company has been growing its payouts for 23 consecutive years, which makes it one of the best dividend stocks to invest in. Currently, it offers a quarterly dividend of $1.64 per share and has a dividend yield of 7.52%, as of July 30.

While we acknowledge the potential of UPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.