Is United Parcel Service Stock a Buy Now?

United Parcel Service (NYSE: UPS) has a huge 7.5% dividend yield. For reference, the S&P 500 (SNPINDEX: ^GSPC) is only offering a yield of around 1.2%. The company's dividend has been increased annually for 16 consecutive years.Investors probably shouldn't view UPS, as the stock is more commonly known, as a dividend stock. Here's what you need to know if you're thinking about buying this delivery giant right now.United Parcel Service's trailing-12-month dividend payout ratio is close to 100%. Dividends aren't paid out of earnings, however, so the dividend as a percentage of earnings (the payout ratio) can be elevated for a little while, and nothing bad may happen. Dividends come out of cash flow, but that's actually worse in this case, because the cash dividend payout ratio is 150% over the trailing 12 months. The cash dividend payout ratio looks at dividends as a percentage of free cash flow.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool