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A Dramatic Fed Pivot Just Unlocked a New Era of Growth for UPS
Key takeaways
- CFO Brian Dykes guided $5.5B in free cash flow against $5.4B in planned dividends, leaving no buffer before a $1.3B pension contribution.
- UPS covered its Q2 2025 dividend with debt financing after free cash flow turned negative $775 million, and the dividend growth streak is now frozen.
- Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and United Parcel Service didn t make the cut.
A Dramatic Fed Pivot Just Unlocked a New Era of Growth for UPS Alex Sirois Thu, June 11, 2026 at 9:42 PM GMT+7 3 min read UPS NVDA Quick Read UPS trades near $103 with a 6% yield, but a 113% FCF payout ratio means dividends exceed what the company actually generates in free cash.
CFO Brian Dykes guided $5.5B in free cash flow against $5.4B in planned dividends, leaving no buffer before a $1.3B pension contribution.
UPS covered its Q2 2025 dividend with debt financing after free cash flow turned negative $775 million, and the dividend growth streak is now frozen.
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