Is UPS a good dividend producing stock?

**United Parcel Service (UPS) is not a good dividend producing stock due to its high dividend payout ratio, low dividend growth rate, and declining dividend duration**, Here's why:

1. **High Dividend Payout Ratio**: UPS's dividend payout ratio is **-92.2%**, which is negative and suggests that the company is not generating enough free cash flow to cover its dividend payments. A high payout ratio can indicate that a company is retaining a large portion of its earnings, which may impact its ability to sustain and grow its dividend payments over time.
2. **Low Dividend Growth Rate**: UPS has a **dividend growth duration of 15 years**, but the company's dividend growth rate is **-92.2%**, which is a significant decline from its previous growth rate. This indicates that the company's dividend payments may be at risk of declining in the near future.
3. **Declining Dividend Duration**: The length of time that UPS has been paying dividends is **15 years**, which is relatively short compared to some other companies. Additionally, the company's dividend yield is **6.36%**, which is higher than the risk-free rate of **4.5%**, indicating that the market may perceive the dividend as at risk.
4. **Market Concerns**: The market appears to be implying considerable doubt about the sustainability of UPS's dividend. Cutting the dividend could be a catalyst for stock outperformance.
5. **Financial Health**: Despite these concerns, UPS has a strong underlying business and is investing in areas like healthcare and small and medium-sized business revenue, which could support future growth and dividend sustainability.

In conclusion, while UPS has a strong underlying business and is investing in areas that could support future growth and dividend sustainability, its high dividend payout ratio, low dividend growth rate, and declining dividend duration make it a risky investment for income-focused investors. The company's dividend may be at risk of declining in the near future, and investors should exercise caution when considering UPS as a dividend-producing stock.