UPS has paid a flat $1.64 per share each quarter for seven straight quarters after a one-cent increase earlier. It expects about $5.4 billion in dividend payments in 2026 against adjusted free cash flow guidance of about $6.1 billion, or roughly 89% of cash flow, and at $109.14 the stock yields about 6%. U.S. Domestic revenue per piece rose 6.1% in the third quarter even as average daily volume fell 3.3% as UPS cut Amazon volume, while the segment's adjusted margin widened to 7.0% from 6.4%. UPS ended the quarter with $6.8 billion in cash, and CFO Brian Dykes said 2027 free cash flow should keep improving dividend coverage, though management gave no timeline for a raise. The article concludes the dividend looks safe and identifies U.S. Domestic revenue per piece as the most useful early signal for the next raise.
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