Why These 10 Dividend Stocks Are Declining?

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

Annual dividend yield: 5.76%

Ex-Dividend Date: February 18, 2025

Number of Hedge Funds: 45 (2024 Q3)

Quarterly dividend amount: $1.64 

United Parcel Service, Inc. (NYSE:UPS) declined 8.5% in the past month amid growing concerns over declining package volumes after the company announced its plan to reduce its business with Amazon Business, which makes up 11.8% of UPS’ total revenue of $91.1 billion. In an interview with Bloomberg Television, Carol Tomé, The CEO of United Parcel Service Inc., stated that:

“They are our largest customer, but they are not our most profitable customer.”

Despite being the top customer, the margin earned from the Amazon business is very meager. Therefore, United Parcel Service, Inc. (NYSE:UPS) aims to move toward more profitable delivery options as they target higher margin deliveries such as express shipping, B2B shipping, and high-value goods shipments. The stock price declined as a result of this decision, as the investors believed that lost volume could affect the overall revenue and the valuation of the company.

United Parcel Service, Inc. (NYSE:UPS) has a history of consistent dividend growth, having maintained it for over 16 years, and remains one of the favorites among dividend investors. The following strategy caused some concern among investors and analysts alike on this logistics giant.