Prediction: 1 High-Yield Stock That Will Be Worth More Than UPS 2 Years From Now
Enterprise Products Partners might be a better income play.
UPS (NYSE: UPS), one of the world's top shipping couriers, was once considered a stable long-term investment. It operates in over 200 countries, delivers an average of 22.4 million packages daily, and employs nearly half a million people worldwide. UPS has also been a member of the S&P 500 for 23 years and has raised its dividend annually for 16 consecutive years.
However, over the past two years, UPS's stock has plummeted by more than 50% as its deliveries decelerated, its operating margins shrank, and its EPS declined. That slowdown was caused by inflationary headwinds for consumer spending, intense competition from FedEx (NYSE: FDX) and other courier services, and the threat of a strike from the Teamsters Union in 2023, which drove some of its nervous customers to shift their deliveries to its competitors.
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