Investors attracted to UPS (NYSE: UPS) stock are, no doubt, drawn at least in part by its generous 4.7% dividend yield. But how sustainable is that payout, and what are the prospects that the company will continue its 15-year run of raising its dividend per share next year? Here's the lowdown.

Usually, when investors discuss a payout ratio, they compare dividends per share (DPS) with earnings per share (EPS). In this case, UPS' adjusted diluted EPS was $8.78 in 2023, and the Wall Street analyst consensus for EPS in 2024 was $8.23. The current UPS dividend is $1.63 a quarter, equating to $6.52 for the full year. As such, the payout ratio (DPS/EPS) for 2024 is estimated to be 79%.

Commenting on the matter during the recent earnings call, CEO Carol Tome said:

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Source Fool.com