15 Best Dividend Stocks to Buy for Long-Term Passive Income

9. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 59

United Parcel Service, Inc. (NYSE:UPS) ranks ninth on our list of the best dividend stocks for passive income. The American multinational shipping and supply chain management company reported stable earnings in the fourth quarter of 2024. It posted revenue of $25.3 billion, marking a 1.54% increase compared to the same period the year before. The company also reached a preliminary deal with its largest customer to cut package volume by more than half by the latter half of 2026. In addition, UPS has assumed full ownership of its SurePost service and is reorganizing its U.S. operations. These changes are part of a broader restructuring strategy aimed at boosting efficiency and achieving approximately $1 billion in cost savings.

United Parcel Service, Inc. (NYSE:UPS)’s management is zeroing in on the more lucrative segments of the delivery market, with a particular emphasis on serving small and mid-sized businesses and the healthcare industry. In a strategic move, it is intentionally scaling back delivery volume from Amazon to free up capacity for higher-margin shipments. To support this shift, leadership has begun restructuring its network with the objective of trimming operating expenses by $1 billion.

United Parcel Service, Inc. (NYSE:UPS)’s strong cash flow has enabled it to sustain returns to shareholders. In 2024, it generated $10.1 billion in operating cash flow and $6.3 billion in free cash flow. Over the course of the year, UPS returned a total of $5.9 billion to shareholders through dividends and share repurchases. The company has been growing its payouts for 23 consecutive years. Currently, it offers a quarterly dividend of $1.64 per share and has a dividend yield of 6.68%, as of April 24.