Yahoo Finance analysis points out that UPS's (United Parcel Service) high dividend yield of 6.56% is not due to dividend growth, but rather a 34% drop in its stock price. The company's quarterly dividend of $1.64 per share has been frozen for seven consecutive quarters. Last year, UPS paid out $5.4 billion in dividends, almost exhausting its $5.47 billion in free cash flow. CFO Brian Dykes confirmed that despite a 3.6% decline in consolidated volume and increased interest expenses, the company still plans to pay approximately $5.4 billion in dividends in 2026, but analysis suggests its dividend coverage is very tight.