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. Stock
With 27 Buy predictions and 4 Sell predictions United Parcel Service Inc. is one of the favorites of our community.
As a result the target price of 102 € shows a slightly positive potential of 12.73% compared to the current price of 90.48 € for United Parcel Service Inc..
