Why United Parcel Service (UPS) Belongs on Every Industrial Dividend Watchlist

United Parcel Service, Inc. (NYSE:UPS) is included among the 13 Best Industrial Dividend Stocks to Buy Right Now.

Why United Parcel Service (UPS) Belongs on Every Industrial Dividend Watchlist

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

Stronger operations, a better customer base, and the settlement of labor-related challenges all work in its favor for those taking a long-term view.

United Parcel Service, Inc. (NYSE:UPS) currently offers a quarterly dividend of $1.64 per share for a dividend yield of 6.48%, as of July 13. The company has been rewarding shareholders with growing dividends for the past 23 years. That said, the investment is not low risk because of its unusually high dividend yield, which is tied to a payout ratio that’s around 90%. However, it’s worth noting that companies can maintain payout ratios above 100% temporarily, since dividends are typically paid from cash flow rather than reported earnings.

United Parcel Service, Inc. (NYSE:UPS) has a stable cash generation. In the first quarter of 2025, the company reported an operating cash flow of $2.3 billion, and its free cash flow was $1.48 billion. UPS ranks among the world’s largest companies and offers a wide array of integrated logistics services to customers across over 200 countries and territories.

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.