United Parcel Service will pay a quarterly dividend of $1.64 per share on September 3, 2026, keeping its annualized payout at $6.56 and its yield above 6 percent. Goldman Sachs added the delivery giant to its Conviction List this month with a $132 price target, one of five dividend payers the firm expects to beat the market.
The setup
UPS stock trades near $104, roughly 15 percent below its 52-week high of $122.41. The company carries a market value near $90 billion and a forward yield of about 6.2 percent, one of the largest payouts in the S&P 500.
The average yield across the index sits under 2 percent. That gap is what attracts income investors to the parcel carrier, and it is also what keeps short sellers watching the payout for signs of strain.
Key numbers for dividend investors
| Metric | Value |
|---|---|
| Quarterly dividend | $1.64 per share |
| Annualized dividend | $6.56 per share |
| Forward yield | About 6.2% |
| Next payment date | September 3, 2026 |
| Most recent ex-dividend date | August 17, 2026 |
| Payout ratio | About 94% of earnings |
| Market value | Near $90 billion |
Income per $100,000 invested
A $100,000 position in UPS near $104 per share generates roughly $6,300 in annual dividend income before taxes. The same dollars in an average S&P 500 stock, at a yield under 2 percent, would produce less than a third of that income.
Dividend.com counts 16 consecutive years of increases in the UPS payout. The company has maintained or raised the dividend every year since its 1999 public listing.
The 2026 dividend calendar
| Payable date | Declared | Ex-dividend date | Amount |
|---|---|---|---|
| March 5, 2026 | January 27, 2026 | February 17, 2026 | $1.64 |
| June 4, 2026 | May 6, 2026 | May 18, 2026 | $1.64 |
| September 3, 2026 | August 5, 2026 | August 17, 2026 | $1.64 |
| December 4, 2026 | Estimated | November 17, 2026 | $1.64 |
The Amazon glide-down continues
UPS announced last year that it would cut shipping volume for Amazon by more than 50 percent by the second half of 2026. Management framed the reduction as part of a shift toward more profitable, less risky freight segments.
The strategy trades top-line volume for margin quality. For dividend safety, that trade matters more than headline revenue growth.
Risks to watch
- A payout ratio near 94 percent of earnings leaves a thin cushion if profits dip
- Package volumes track the industrial economy, which is sensitive to slowdowns
- Network restructuring and labor costs can absorb cash that would otherwise fund the dividend
Common mistakes income investors make
- Buying the stock the week before the ex-dividend date without checking the payout ratio first
- Treating a 6 percent yield as money in the bank when the earnings cushion is already thin
- Letting one position grow so large that a single dividend cut would break the retirement budget
A payout held flat for four straight quarters still pays well. The mistake is assuming the next four quarters look identical without watching the earnings reports that fund them.
Analyst outlook
Goldman Sachs carries a $132 price target on UPS, implying about 29 percent upside from early September prices. The firm’s Conviction List also includes Citizens Financial Group, ConocoPhillips, TPG, and Tyson Foods among its dividend picks. Goldman sees the S&P 500 finishing the year at 8,000.
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