The article compares UPS (7.0% yield) with General Mills (7.7%) and concludes General Mills is the better high-yield dividend stock because its payout is better covered. UPS's dividend took 99% of free cash flow over the twelve months to June 30, 2026, versus 85% at General Mills over the twelve months to August 30, 2026, and General Mills plans to hold its dividend flat while it pays down debt. General Mills' fiscal first-quarter net sales fell 3% to $4.4 billion after the sale of its U.S. yogurt business, and it expects adjusted operating profit to fall 8% to 13% in fiscal 2027. UPS, meanwhile, raised its 2026 outlook after completing its Amazon glide-down, but General Mills' net debt to EBITDA of 3.7x in fiscal 2026 remains above its 3x target, and it expects at least a couple of years to get back there.
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