The author notes that United Parcel Service (UPS) yields around 6.1%, far above the S&P 500 average of 1.1%, but its third-quarter diluted EPS fell to $1.37 from $1.55 a year earlier. Revenue rose nearly 7% year over year to $22.9 billion, while the company absorbed $130 million in after-tax transformation costs and a $182 million goodwill impairment, and adjusted EPS was $1.69. Free cash flow totaled $4.2 billion over nine months, about $1.4 billion a quarter, roughly matching the $1.64 quarterly dividend with only a slim buffer. The author considers the dividend manageable for now but warns that rising oil prices and inflation could weaken results, and that a cut might be needed to improve earnings. UPS shares have risen 9% this year, and the author says better dividend stocks are available.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- 70% of UPS Packages Will Be Handled by Machines This Holiday Season
UPS expects nearly 70% of packages during the holiday peak to pass through automated sorting inside its buildings, CEO Carol Tomé said on the Oct. 27, 2026 third-quarter call, while drivers still deliver every box. The company is shifting to a sensing network based on RFID tags, which are active at 315 customer locations and are expected to reach 6 million packages a day in 2027, replacing manual scans. A little over 100 U.S. customers account for about 80% of the peak, and fourth-quarter daily volume is expected to fall 1.3% year over year as UPS cut volume from Amazon. U.S. Domestic daily volume fell to 15.621 million pieces from 16.150 million, yet adjusted margin rose to 7.0% from 6.4%, even as cost per piece rose 5.5%. The article notes that dividend coverage is tight, with free cash flow guidance of about $6.1 billion against planned dividends of around $5.4 billion.
- United Parcel Service, Inc. Q3 2026 Earnings Call Summary
- Is AGNC Investment 16.5%-Yielding Dividend Still Safe? Its Earnings Are Declining, But the CEO Just Said Another Metric Matters More.
AGNC Investment (AGNC) had a tough third quarter, with earnings and book value both declining. Tangible net book value per share fell $1.45 (16.9%) to $7.13, and the economic return on common equity was -12.7%. Net spread and dollar roll income of $0.37 per share was close to the $0.36 paid in dividends and marked a third straight quarterly decline. The share price drop pushed the dividend yield to 16.5%, but CEO Peter Federico said the dividend remains well aligned with the business, citing a total cost of capital of around 19%, a roughly 20% return on equity on the existing portfolio, and about 19% on new investments. The article concludes the payout appears safe for now but would be at risk if returns fell below costs, reflecting the high-risk profile behind the high yield.
- Is AGNC Investment's 16.5%-Yielding Dividend Still Safe? Its Earnings Are Declining, But the CEO Just Said Another Metric Matters More.
AGNC Investment's third-quarter earnings and tangible book value per share both declined, with the latter falling $1.45 (16.9%) to $7.13 as surging rates hit Agency MBS, and the share price drop pushed its dividend yield to 16.5%. Net spread and dollar roll income was $0.37 per share, close to the $0.36 paid in dividends ($0.12 monthly) and the third straight quarterly decline, while the economic return on common equity was a negative 12.7%. CEO Peter Federico said the key metric is total cost to capital, roughly 19%, while the existing portfolio generates about a 20% return on equity and new investments about 19%, so the dividend remains well aligned with the business economics. The article concludes the payout appears safe for now but would be at risk if returns fall below costs, and that the high yield reflects the mortgage REIT's high-risk profile.
- IBM Stock Is Down 13% in 2026. Is Its Dividend Still Safe?
IBM shares are down 13.34% year-to-date in 2026 while the dividend kept rising, with the stock yielding 2.66% at $251.56. Free cash flow covered the 2025 dividend about 2.4 times ($14.73 billion against $6.255 billion), and in the first nine months of 2026 it reached about $8 billion, up 8%, roughly 1.7 times the $4.8 billion paid in dividends. Total debt climbed to $63.8 billion, up $2.6 billion this year, largely from $11.4 billion of acquisitions in 2026 after $8.3 billion in 2025. Annual recurring revenue reached $24.9 billion, up 8%, and cash was $11.1 billion. The article judges the dividend still one of the safest in tech, but warns that if debt-funded deals keep pushing debt up while free cash flow growth slows, coverage and room for future increases will shrink.
- Despite a Volatile Quarter, This 16%-Yielding Dividend Looks Safe
Annaly Capital Management (NLY) faced a volatile third quarter as the 10-year Treasury rate surged to a multi-decade high, weighing on fixed-income values. Book value per common share fell from $20.15 to $17.86, economic return was -7.6%, and the company posted a GAAP loss of $1.36 per share. However, earnings available for distribution (EAD) rose to $0.80 per share, more than covering its $0.75-per-share dividend, which was raised from $0.70 in June. The REIT credited its low leverage and minimal duration exposure, while its mortgage servicing rights (MSR) portfolio grew 22% to $4.3 billion and it raised $757 million of capital. The article notes Annaly has cut its dividend before and could do so again if market conditions and returns deteriorate significantly.
Related markets
Latest news
- 3 High-Yielding Dividend Stocks Investors Should Consider Holding Even if the Stock Market Sell-Off Persists in November
The article reviews three consumer stocks with attractive dividend yields and stresses that payouts must be covered by real cash flow. Reynolds Consumer Products (REYN) yields nearly 4%, but retail volumes fell 5% in the second quarter and commodity costs could weigh on results by roughly $400 million this year. Ethan Allen Interiors (ETD) yields about 7.6% and carries no debt, but fiscal 2026 sales fell 5.7%, regular dividends nearly matched net income, and shareholder Doug Bergeron is running a proxy fight. Darden Restaurants (DRI) yields roughly 3% with its dividend raised 8% and uses less than 60% of expected fiscal 2027 earnings, though first-quarter EPS fell to $2.04 from $2.19 and Olive Garden's same-restaurant sales grew more slowly than LongHorn's. The author views Reynolds and Darden as the core of an income portfolio and Ethan Allen as one to approach with more caution.
- Nvidia Isn't the Only AI Winner. Qualcomm May Be the Next Stock to Watch
Qualcomm is lining up two custom silicon wins with global hyperscalers for data center chips, expected to start generating revenue in the December quarter, with data center targets of $5 billion in fiscal 2027 and $15 billion in fiscal 2029. Fiscal Q3 revenue of $9.95 billion beat the $9.67 billion consensus, but non-GAAP EPS of $2.21 came in just short of the $2.22 estimate, as handset revenue fell 20% while automotive rose 61%. The main risk is handset weakness, with Qualcomm's share of upcoming iPhones expected to be materially lower than 20% and Android revenue seen falling 20% in fiscal 2027. The 24/7 Wall St. price target is $225.91, 24.46% above the $181.51 share price, with a buy rating, while its bear case is $190.77.
- Wall Street's Fear Index is doing something strange. Here's what it means for stocks
Stocks wrapped their worst week since June, with the S&P 500 down nearly 2% on Friday, yet the VIX closed at 19.4 after touching its highest intraday level since April. SpotGamma's Brent Kochuba called the 2.2-point VIX move relatively muted, estimating it should have risen closer to 2.6 points based on 126 selloffs since 2018. Nomura's Charlie McElligott noted that out-of-the-money S&P 500 puts are not being chased, while Nasdaq 100 puts 20% to 50% out-of-the-money grew pricier in volatility terms after the Oct. 16 selloff. One explanation is that asset managers are selling stocks rather than hedging with options, and Morgan Stanley data shows global gross equity exposure of long-short managers fell 8% from its peak, the biggest drawdown in at least ten years. Convexitas CIO Zed Francis called it a massive de-levering event and said it is the main reason implied volatility has stayed quiet.
- Global Superconducting Quantum Computing Market Report 2026: Size, Trends, and Forecast | Capitalize on the $6.57 Billion Market by 2030 with Google, IBM, Intel, and Fujitsu
This paid press release presents a market report on superconducting quantum computing, projecting growth from $1.83 billion in 2025 to $2.37 billion in 2026 (29.4% CAGR) and $6.57 billion by 2030 (29.0% CAGR). Cited drivers include rising investment in research, development of fault-tolerant systems, quantum error correction, and cloud-accessible platforms. According to the US Private Equity Council, venture funding in quantum computing exceeded $1.25 billion in Q1 2025, up 128% from the same quarter of 2024. In July 2026, China-based Logical Qubit Technology launched a quantum cloud platform using its AGate chips, including 30-qubit and 100-qubit systems. Google acquired Atlantic Quantum in October 2025 for an undisclosed amount, North America led the market in 2025, and Asia-Pacific is expected to be the fastest-growing region.
- X-Energy Has Amazon as an Anchor Customer and Went Public in April. Is It a Better SMR Stock Than Oklo?
The article compares SMR developers X-Energy (XE) and Oklo (OKLO). Amazon, X-Energy's anchor customer and early investor, led a $700 million Series C-1 round in October 2024, holds nearly 66 million shares (roughly 23%), and aims with X-Energy to deploy 5 GW of SMRs in the U.S. by 2039. The article says X-Energy is further along in NRC reviews, as the Nuclear Regulatory Commission accepted its construction permit application for a project with Dow, and it has firmer customer commitments, including four 80 MW Xe-100 units planned in Texas and early-stage deals with American Electric Power and Energy Northwest. Oklo has a 14 GW pipeline, but 12 GW is tied to a non-binding agreement with Switch, and its Aurora powerhouse is targeted for a pilot at Idaho National Laboratory in 2028 while it still needs NRC licensing to sell power commercially. The article judges that X-Energy has an early advantage, though both companies still face execution and deployment risks.
- Microsoft Corp.’s (MSFT) AI Advantage: Scale, Trust, and Economic Value
Aoris Investment Management reported that Class A of its International Fund returned 3.6% in Q3 2026 (+2.4% alpha) and Class C returned 4.5% (+3.1% alpha), targeting 8–12% annual net returns over a 5–7 year market cycle. Microsoft (MSFT) was a leading contributor, with its shares up 37% over three months and adding 2.4% to the fund's return. Aoris said that for most of the past two years investors focused on AI model capability, which left Microsoft's AI offerings looking pedestrian by comparison. MSFT closed at $521.91 on October 30, 2026, with a market capitalization of $3.88 trillion. At the end of Q2, 273 hedge fund portfolios held the stock, down from 282 the previous quarter.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.