Is UPS's 7.5%-Yielding Dividend Still Safe?
When a stock's yield is more than 7%, it's only natural to question whether it's sustainable. After all, if it were truly safe, it would be a bargain buy, investors would buy it up, and as the price would rise, that yield would come down. When that isn't happening, it's a sign that investors are having second thoughts about the payout and whether it really is worth the risk.
Logistics giant United Parcel Service (NYSE: UPS) offers a mouthwatering payout of 7.5%, which is well above the S 500 average of just 1.2%. At such a high yield, you might expect it to be on the buying list of all income-seeking investors. But as of the end of July, the stock was down more than 30%. That downward pressure has been pushing the yield higher.
Are investors overlooking a quality dividend stock with UPS, or could its payout really be in trouble?
Source Fool.com
United Parcel Service Inc. Aktie
Die Community bevorzugt leicht United Parcel Service Inc. mit mehr Buy- als Sell-Einschätzungen.
Ein leichtes Potenzial nach oben für United Parcel Service Inc. mit einem Kursziel von 102 € gegenüber dem aktuellen Kurs von 86.72 €.
