UPS Shares Rise 2.07% to $86.78 With $820M Volume Ranking 116th as 7.76% Yield Sparks Analyst Debate on Dividend Sustainability

On August 5, 2025, United Parcel Service (UPS) closed at $86.78, rising 2.07% with a trading volume of $0.82 billion, ranking 116th in daily liquidity. Analysts highlighted concerns over dividend sustainability amid potential trade disruptions, though the stock’s 7.76% yield remains a draw for income-focused investors.

Recent reports underscored UPS’s operational challenges, including pressure from low-margin Amazon deliveries and potential tariff impacts. Despite these risks, analysts noted the company’s strategic focus on healthcare logistics and technology investments could offset short-term headwinds. However, a projected 74.8% dividend payout ratio next year raises questions about long-term sustainability.

Analyst sentiment remains mixed, with a “Hold” consensus rating based on 11 buy, 16 hold, and 2 sell recommendations. UPS’s 12.64 price-to-earnings ratio lags slightly behind its sector average, while short interest surged 603% in a month, reflecting growing bearish sentiment. Institutional ownership at 60.26% suggests confidence in its long-term stability.

A backtest strategy of holding the top 500 high-volume stocks for one day yielded 166.71% returns from 2022 to present, far outpacing the benchmark’s 29.18%. This highlights liquidity-driven momentum in volatile markets, where high-volume stocks often capture short-term gains effectively.