Published on 5 May 2024 on Simply Wall St. via Yahoo Finance

Do These 3 Checks Before Buying United Parcel Service, Inc. (NYSE:UPS) For Its Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that United Parcel Service, Inc. (NYSE:UPS) is about to go ex-dividend in just 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase United Parcel Service's shares on or after the 10th of May, you won't be eligible to receive the dividend, when it is paid on the 30th of May.

The company's next dividend payment will be US$1.63 per share. Last year, in total, the company distributed US$6.48 to shareholders. Calculating the last year's worth of payments shows that United Parcel Service has a trailing yield of 4.4% on the current share price of US$146.43. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.