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Posted by
Two Blokes Jul 26 -
Filed in
Stock
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2 views
UPS's dividend, long considered safe, is now at risk due to declining sales, and an elevated cost base in a shaky economic environment. The dividend hike in 2022 was too aggressive, with the current yield above 6% signaling financial stress, especially as free cash flow no longer covers the payout. Cost-cutting and restructuring may help, but a weakening US economy and persistent high personnel costs threaten UPS's ability to sustain its dividend.
