Is UPS a Good Stock for Passive Income Investors?
UPS is a reminder that dividend investors can't afford to focus on yield or past payout hikes.
Overview
Equity income investors have a lot to consider. With the S&P 500's yield hovering near all-time lows, it's understandable that some market participants are prioritizing yield, at least relative to the broader market.
Then there's the element of consistent, dependable payout growth, which is the lifeblood for long-term passive income investors. Of course, it's always nice to command an above-average yield and steady dividend increases under the umbrella of a single stock. Still, investors need to be cautious before being seduced by high yields and long streaks of payout increases.
Details
United Parcel Service (NYSE: UPS) confirms as much. Earlier this year, the company froze its payout. That's one strike against this industrial stock, and there are other reasons passive income investors should tread cautiously.
Source
Originally published at www.fool.com.