Package delivery and logistics leader United Parcel Service (UPS) has now joined an exclusive list of S&P 500 Index ($SPX) companies that offer a dividend yield of more than 7%. However, this was a consequence of the company’s weaker-than-expected second quarter results, in which its earnings missed consensus estimates. Since then, the stock has corrected by nearly 15%, with the company's current market capitalization at approximately $73 billion.
UPS stock now offers a dividend yield of 7.56%, with a payout ratio nearing 90%, which will almost certainly put a halt to its impressive record of 15 consecutive years of dividend growth.
