Why I Just Loaded Up on This 5.7%-Yielding Dividend Stock

United Parcel Service (NYSE: UPS) delivers astir 20.8 cardinal packages each day. But it hasn't been delivering for investors successful caller years. Despite a bounce that began a fewer months ago, UPS' stock terms remains down astir 37% since aboriginal 2023.

Some mightiness presumption UPS arsenic the benignant of banal to not interaction with a 10-foot pole. Not me. Here's wherefore I conscionable loaded up connected this 5.7%-yielding dividend stock.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

I've been expecting UPS to equine a beardown comeback for a portion now. It looks similar that comeback is commencing.

Over the past 3 months, UPS banal is up much than 24%. Its show has perfectly trounced that of the S&P 500 (SNPINDEX: ^GSPC) and topped the broader industrials sector.

What happened? UPS blew past Wall Street's net estimates for the 3rd 4th of 2025. The institution besides handily bushed expectations for the 4th quarter.

Impressively, UPS managed to outperform contempt important challenges. CEO Carol Tomé acknowledged those challenges successful the Q4 net call, stating, "In 2025, we operated done a precise dynamic macro environment, including important changes successful planetary commercialized policies and expanding geopolitical concerns."

To beryllium sure, UPS inactive faces immoderate headwinds. The institution isn't apt to make the kinds of numbers investors similar successful the archetypal fractional of 2026. However, absorption expects important betterment successful the 2nd fractional of the year. It besides believes that UPS volition beryllium poised for greater maturation beyond 2026.

I'm assured that UPS's profitability volition improve. And stock prices thin to way with net implicit the agelong term.

Why americium I truthful optimistic? For 1 thing, UPS has already dramatically reduced its outgo structure. The institution has achieved astir $3.5 cardinal successful outgo savings from web reconfiguration alone.

Looking ahead, UPS is successful the location agelong of the Amazon (NASDAQ: AMZN) measurement glide down. The institution expects to determination guardant with a 2nd voluntary separation programme for its full-time drivers, pursuing a palmy 1 offered past year. It's targeting further savings of astir $3 cardinal successful 2026 related to the Amazon glidedown.

Also, UPS is moving hard to unafraid higher-margin business. Perhaps the champion illustration of this inaugural is the company's efforts to go the world's No. 1 supplier of analyzable healthcare logistics. The November 2025 acquisition of Andleur Healthcare Group for $1.6 cardinal represented a large measurement toward achieving that goal.