United Parcel Service, Inc.
UPSUnited Parcel Service, Inc. (UPS) is a Industrials company that currently yields 6.49% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $103.69 and the overvaluation threshold at $225.23. United Parcel Service, Inc. holds a quality score of 55/100 (Average), reflecting 14 consecutive years of dividend growth with a 106% payout ratio. The 5-year dividend CAGR stands at 10.2%.
UPS Dividend Yield History — Weiss Valuation
Distance to undervalued
In undervalued territory
Price sits 2.6% below the Weiss buy zone ceiling
The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.
Zone ceiling
$103.69
Current yield
6.49%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
106%Coverage deserves a closer look in filings.
Cash payout
106%Confirm cash conversion and one-off effects.
Dividend growth
10.2%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
United Parcel Service, Inc. is trading near its historical undervaluation band.
Current yield 6.5% vs historical max 5.7% (114% of maximum).
14 consecutive years without a dividend cut.
Elevated payout ratio of 106%.
What matters now
Read the signal before the headline yield
Valuation is the invitation here: the yield is elevated versus its own history.
The 55/100 quality score says the headline yield needs extra skepticism.
The earnings payout ratio is above 100%, so coverage is the first risk to unpack.
UPS Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$716
Year 10 Income
$4,336
Yield on Cost
50.8%
Total Income
$19,619
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗UPS Dividend Quality Score
Quality Score
Average
Key Metrics
UPS is historically undervalued. Ready to add it to your portfolio?
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In-depth analysis
→ UPS Dividend Analysis Article