Is UPS the Best Dividend Stock?
UPS' (NYSE: UPS) current forward dividend yield of around 4.4% is highly attractive for income-seeking investors, but is the payout sustainable? The company's earnings have disappointed recently, and the dividend cover looks pretty thin in 2024. Is UPS a stock for dividend hunters to buy? Here's what you need to know before buying the stock.
The company's trailing-12-month dividend cost it about $5.4 billion, and as you can see below, following a disappointing 2023, its free cash flow (FCF) per share didn't cover its dividend last year. Clearly, that's not a sustainable situation, and investors should buy UPS stock more for where the company is going than where it just came from.
Source Fool.com
United Parcel Service Inc. Stock
€90.34
-1.140%
The stock is one of the favorites of our community with 27 Buy predictions and 4 Sell predictions.
With a target price of 102 € there is a slightly positive potential of 12.91% for United Parcel Service Inc. compared to the current price of 90.34 €.
