Jim Cramer Regards United Parcel's High Dividend as a "Total Red Flag"

United Parcel Service, Inc. (NYSE:UPS) is one of the stocks Jim Cramer was recently focused on. Cramer highlighted his worry about the company’s high dividend yield. He said:

“Pivot over to the transports, and you see UPS with the 7.76% yield. Management’s repeatedly told us their dividend’s a top priority. Iconic, trusted brand, really one of two in a nice duopoly, but I just can’t go there because that 7.76% yield is what I regard as a total red flag. I’m concerned that a real slowdown would force them to cut the dividend.”

United Parcel Service, Inc. (NYSE:UPS) provides package delivery and logistics solutions, including express and ground shipping, international freight forwarding, customs brokerage, and specialized services. Cramer mentioned the episode during the September 17 episode and said:

“I’m even more concerned about United Parcel with its 7.8% yield. That yield’s too high, may not be sustainable even as management keeps saying otherwise. Fairly or unfairly, when you see that kind of high yield that… this stock market is saying, don’t trust the dividend.”

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Disclosure: None. This article is originally published at Insider Monkey.