UPS shares trade near $100, about 57% below their all-time closing high of $232.11, pushing the dividend yield to roughly 6.5% on a $1.64 quarterly payout. Management expects 2026 adjusted EPS of about $7.22, down about 44% from $12.94 in 2022, after the Amazon volume cut finished in June. In the second quarter, U.S. domestic revenue rose 6% and the segment's adjusted operating margin widened to 8%, helped by cost programs expected to deliver about $3 billion in 2026. Free cash flow is projected at about $5.5 billion against roughly $5.4 billion in dividends, and the stock trades near 13 times expected 2027 earnings versus about 19 times for the S&P 500. The author sees value for income investors willing to wait for the turnaround, though the Oct. 27 report and thin dividend coverage remain risks.
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