Jim Cramer Shows Concern About United Parcel’s High Yield

United Parcel Service, Inc. (NYSE:UPS) is one of the one of the stocks Jim Cramer commented on, along with the recent Fed meeting. Highlighting the stock’s high dividend yield, Cramer commented:

“I’m even more concerned about United Parcel with its 7.8% yield. That yield’s too high, may not be sustainable even as management keeps saying otherwise. Fairly or unfairly, when you see that kind of high yield that… this stock market is saying, don’t trust the dividend.”

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United Parcel Service, Inc. (NYSE:UPS) provides transportation, distribution, and contract logistics services. The company also handles ocean and air freight, customs brokerage, and insurance. On September 15, Cramer remarked:

“I am worried about United Parcel. I’ll tell you why. It’s down 33% for the year. Because when I see a yield of 7.8%, it worries me because there’s not a lot of yields in the S&P that are that high. The highest yielders tend to be troubled. They do not tend to be reasons to buy, maybe for Verizon when it was… or an ATT, because they’re utilities. But this is of grave consternation to me on UPS. I wish I could be more positive, but that’s how I feel.”

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Disclosure: None. This article is originally published at Insider Monkey.