Is UPS a Good Stock for Passive Income Investors?

United Parcel Service (UPS) froze its dividend after a 16-year streak of increases, raising concerns for passive income investors. While the 6.3% yield is attractive, the company's payout ratio of 106% exceeds net income, and free cash flow is declining. Morningstar lists UPS among potential dividend offenders, suggesting income investors should look elsewhere despite the company's otherwise healthy balance sheet.