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UPS dividends projected to remain unchanged through 2027, safety questioned despite 6.7% yield

The Motley Fool +1 ·

UPS United Parcel Service Inc
$101.06 -0.45%
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  1. 1Analysis suggests UPS (UPS) dividends are likely to remain frozen through 2027.
  2. 2Of the $5.47 billion in free cash flow in 2025, $5.4 billion was used for dividends, with projections of $5.05 billion this year and $5.01 billion in 2027.
  3. 3Dividends are estimated to consume 98% of this year's free cash flow, and the 6.7% dividend yield as of October 16 ranks among the top 10% of S&P 500 stocks.

So what's the key point?

Analysis indicates that UPS is likely to keep its dividends at current levels this year and next year. However, because nearly all the money earned is being used for dividends, it is difficult to consider the dividends safe.

Source The Motley Fool +1 · View original ↗

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