United Parcel Service (UPS) is moving away from low-margin deliveries for Amazon, prompting Evercore ISI to lower its price target to $107 from $118. The company’s dividend, yielding 6.7%, is expected to be frozen in 2026, ending 16 years of increases. UPS faces challenges with free cash flow barely covering its $5.40 billion dividend amid rising costs and debt, but it forecasts over $91 billion in revenue and $8.6 billion in adjusted operating profit for the year. The shift towards higher-margin sectors like healthcare helps improve profit margins despite these concerns.
As of Oct 20, 2026 21:21 WIB, UPS shares trade at USD 98.79 on Pluang, showing a 1.36% increase for the day. The stock's dividend yield stands at 6.73%, closely matching the article's figure. Despite the strategic shift and dividend concerns, investor activity on Pluang shows a strong sell bias with 98% of orders being sell orders.
