UPS Shares Plunge as Trading Volume Slumps to 115th in Market Dividend Resilience and Strategic Shifts Highlight Long-Term Outlook

On August 1, 2025, United’s trading volume dropped 29.49% to $0.96 billion, ranking 115th in the market. United Parcel Service (UPS) shares fell 1.93% amid ongoing challenges highlighted in its July 29 earnings report, which revealed a year-to-date decline of over 30% in its stock price.

Analysts and executives emphasized the resilience of UPS’s dividend, with a forward yield of 7.38%, backed by strong free cash flow and an investment-grade balance sheet. CEO Carol Tomé reiterated management’s commitment to maintaining and growing the dividend, offering reassurance to income-focused investors. The company’s short-term struggles, including weak U.S. consumer sentiment and tariff-related disruptions in the China-to-U.S. trade lane, are seen as temporary headwinds. UPS reported a 34.8% decline in this trade lane’s volume in May and June but noted a 22.4% increase in volume between China and other global markets.

Strategic moves, such as reducing Amazon shipment volumes by 50%, are expected to enhance long-term profitability despite initial operational challenges. A voluntary separation program for U.S. drivers aims to address staffing attrition, potentially lowering labor costs. Meanwhile, UPS is expanding its healthcare logistics division, targeting the $82 billion market, and plans to acquire Andlauer Healthcare Group for $1.6 billion to strengthen its position. Small-to-medium businesses (SMBs) remain a growth driver, contributing 32% of U.S. volume in Q2 with increased market penetration.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the impact of liquidity concentration on short-term performance, though investors must remain cautious of volatility inherent in high-volume stocks.