Package delivery giant 's (NYSE: UPS) 4.6% dividend yield attracts many income-seeking investors, and value investors are also on board, given the company's low valuation. This company deserves a close look by investors, so here are three factors to consider before diving in.

Whenever anyone finds a high-yield stock, it's essential to consider whether its dividend is sustainable. Since dividends tend to be paid out of free cash flow (FCF), it makes sense to start there.

UPS's trailing FCF of $5.56 billion doesn't provide much cover for its $5.3 billion payout. An observation that leads to the first point: UPS's dividend is sustainable, provided that 2023 is in fact a trough year.

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Source Fool.com