June 22, 2026 a 07:30 am
UPS: Dividend Analysis - United Parcel Service, Inc.
United Parcel Service, Inc. (UPS) has a significant presence in the logistics and package delivery sector, known for its robust dividend profile. With a holding period of over 28 years of consecutive dividend payments, it stands as a testament to continuous shareholder value delivery. In the current market, UPS's dividend yield remains quite attractive, providing ample returns to its investors.
📊 Overview
UPS operates within the Industrial sector, featuring a compelling dividend yield of 6.87%. With the current dividend per share set at $6.36, investors have witnessed 28 years of uninterrupted dividend history. Notably, the company has no recent record of dividend cuts or suspensions, underscoring its financial resilience.
| Metric | Value |
|---|---|
| Sector | Industrial |
| Dividend Yield | 6.87% |
| Current Dividend Per Share | $6.36 |
| Dividend History | 28 years |
| Last Cut/Suspension | None |
🗣️ Dividend History
UPS's robust dividend history illustrates a commitment to shareholders. Continued dividend payments reflect reliable cash flow and management's confidence in future earnings. Such stability is crucial for income-focused investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | $3.28 |
| 2025 | $6.56 |
| 2024 | $6.52 |
| 2023 | $6.48 |
| 2022 | $6.08 |
📈 Dividend Growth
UPS's dividend growth over the recent years reveals a moderate yet upward trend, vital for mitigating inflation impacts on income. It highlights UPS’s ability to boost shareholder value over time.
| Time | Growth |
|---|---|
| 3 years | 2.57% |
| 5 years | 10.18% |
The average dividend growth is 10.18% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Evaluating UPS's payout ratios is critical to ensure dividends are sustainable. The EPS-based payout ratio at 102.96% is relatively high, suggesting dividends may outpace earnings. Meanwhile, the free cash flow-based payout ratio stands at 119.67%, indicating dividends are not fully covered by free cash flow alone.
| Key Figure | Ratio |
|---|---|
| EPS-based | 102.96% |
| Free Cash Flow-based | 119.67% |
The payout ratios suggest that current dividends are potentially unsustainable in the long-run without earnings or cash flow improvements.
📈 Cashflow & Capital Efficiency
The cash flow and capital efficiency metrics are pivotal for assessing financial health. UPS’s free cash flow yield and CAPEX efficiency indicate solid cash flow prospects, though stock-based compensation remains low compared to revenue.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 3.76% | 5.76% | 5.66% |
| Earnings Yield | 4.97% | 5.36% | 6.62% |
| CAPEX to Operating Cash Flow | 50.38% | 38.62% | 43.61% |
| Stock-based Compensation to Revenue | 0.24% | 0.03% | 0.08% |
| Free Cash Flow / Operating Cash Flow Ratio | 49.62% | 61.38% | 56.39% |
UPS demonstrates adequate cash flow management, but high CAPEX percentages may challenge future flexibility if cash flows aren't bolstered.
⚠️ Balance Sheet & Leverage Analysis
A comprehensive analysis of UPS's balance sheet positions, showing adequacy in managing liabilities with assets. Debt ratios indicate leveraged positions demanding scrutiny over solvency.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 1.54 | 1.53 | 1.99 |
| Debt-to-Assets | 37.72% | 36.61% | 44.18% |
| Debt-to-Capital | 60.70% | 60.54% | 66.55% |
| Net Debt to EBITDA | 1.85 | 1.64 | 2.21 |
| Current Ratio | 1.10 | 1.17 | 1.22 |
| Quick Ratio | 1.05 | 1.12 | 1.22 |
| Financial Leverage | 4.10 | 4.19 | 4.50 |
While the company maintains favorable liquidity ratios, significant leverage could pose risks under adverse economic conditions.
📈 Fundamental Strength & Profitability
Assessing UPS's profitability metrics, solid equity and asset returns reflect operational efficiency. The company’s margins indicate sustainable profitability along with healthy returns to compliment firm value creation.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 38.76% | 34.59% | 34.34% |
| Return on Assets | 9.47% | 8.25% | 7.62% |
| Net Margin | 7.39% | 6.36% | 6.28% |
| EBIT Margin | 10.30% | 9.13% | 9.23% |
| EBITDA Margin | 14.01% | 13.11% | 13.45% |
| Gross Margin | 19.51% | 18.77% | 18.08% |
| Research & Development to Revenue | 0% | 0% | 0% |
UPS exhibits strong profit generation, supported by superior return metrics and stable margin performance, confirming its market competitiveness.
📉 Price Development
📊 Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 5 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
🗣️ Rating
United Parcel Service, Inc. maintains an attractive dividend profile with a commendable history of payments and strong market position. The stock exhibits solid profitability metrics, though high payout ratios and leverage warrant cautious optimism. With continued strong market execution, UPS presents a compelling investment opportunity for those seeking dividend yield in the industrial sector. However, potential fluctuations in earnings and cash flows should be considered when evaluating long-term holding prospects.
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