UPS Under $100: Your Last Chance to Buy?
UPS has released its earnings report for the first quarter of 2023, covering January to March. The company regularly publishes these updates to inform investors, regulators, and the market about its financial health and performance.
The latest figures have sparked renewed interest in the delivery giant, particularly among dividend-focused investors. After a challenging period, the results suggest potential improvements ahead—though analysts warn that a full turnaround will take time.
The company’s latest report arrives as part of its routine financial disclosures. UPS has faced scrutiny over its high dividend payout ratio, which currently stands at 87%. Despite this, its forward dividend yield remains attractive at 6.6%, drawing attention from income-seeking investors.
Shares in UPS have climbed steadily since a strong earnings release in October. The recent gains reflect growing confidence in the company’s ability to stabilise and improve its financial position. However, sell-side analysts caution that meaningful progress will likely take years rather than quarters. Earnings are projected to rise by 4.2% in 2026, though there is uncertainty about whether UPS will exceed expectations in the next quarter. A better-than-expected performance could ease concerns about the sustainability of its dividend. It might also help narrow the valuation gap between UPS and its rival, FedEx, which has long traded at a premium.
The latest earnings report has given UPS a short-term boost, with shares rising on investor optimism. While the company’s turnaround is expected to unfold gradually, improved results could strengthen confidence in its dividend and long-term strategy.
For now, analysts and investors are watching closely to see if UPS can maintain momentum in the coming quarters.
