When comparing dividend investments, United Parcel Service (UPS) and Ford Motor Company are standing out for their attractive yields. UPS currently offers a dividend yield of approximately 5.83%, boosted by a track record of 23 years of increasing payouts, according to data from finviz.com. Meanwhile, Ford's dividend yield is slightly lower at 5.56%, with a history of consistent payments over the last 13 years, as reported by tipranks.com.
UPS has reported a solid financial performance, with revenue rising 1.54% in the fourth quarter of 2024 to reach $25.3 billion. The company is making strategic moves to focus on more profitable areas, targeting small and mid-sized businesses, and the healthcare sector, while aiming to cut operating costs by $1 billion. In contrast, Ford, with a forward P/E ratio of 6.9x according to tipranks.com, shows promising earnings improvements and is balancing its push towards electrification with traditional vehicles to appeal to diverse consumer needs.
Despite their attractive yields, the sustainability of dividends is a concern. UPS's payout ratio currently sits at a high 93.38%, raising questions about the future viability of its payments, as noted by monexa.ai. Ford, on the other hand, maintains a more modest payout ratio of 41.27%, suggesting a potentially more secure dividend position. Investors considering these stocks for their dividend potential would do well to weigh these factors carefully.