UPS Trades at 14 Times Forward Earnings With a 6.4% Dividend Yield

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โดย The Motley Fool·Read original
Summary · why it matters

United Parcel Service trades at 14 times forward earnings and offers a forward dividend yield of 6.4%, raising the question of whether it is the best dividend stock in the industrial sector. The company's stock has risen about 26% over the past 12 months but remains 44% below its all-time high of $192.88 reached in February 2022. UPS has been stabilizing its business by focusing on higher-margin orders from small- to medium-sized businesses and healthcare customers, reducing its workforce, and automating tasks, which helped its adjusted earnings per share grow again in 2025 to $7.16. For 2026, UPS expects revenue to rise 3% to $91.2 billion and adjusted earnings to grow 1% to $7.22 per share, marking the first time both metrics would rise together since 2022. Analysts project further growth in 2027, with revenue up 4% and adjusted earnings per share up 12%, supported by AI integration and logistics automation.

Impact on stocks 4

Industrials · 2 stocks
United Parcel Service Inc
UPS
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Trades at 14x forward earnings with 6.4% dividend yield, stabilizing business and expected growth

Artificial Intelligence · 2 stocks