Where Will UPS Be After Its Next Earnings Report?

United Parcel Service (NYSE: UPS) will report its third-quarter earnings on Oct. 18 , and there's a substantial risk that management won't have many good things to say. At the same time, the stock's decline and the company's long-term growth prospects make it a compelling stock to monitor.There's a good chance that UPS will disappoint with its upcoming earnings report, and the company should also consider cutting its dividend. Frankly, any blue chip stock trading on a 7.6% dividend yield is a message from the market that it sees the dividend as unsustainable.Management clearly doesn't see it that way. CEO Carol Tome noted on the last earnings call that "UPS is rock solid strong and so is our dividend. The UPS dividend is backed by solid free cash flow and a strong investment-grade balance sheet." The dividend will cost $5.5 billion in cash in 2025, and management spent $1 billion on share buybacks in the first half.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool