UPS, General Mills, and Best Buy Draw Skepticism Despite High Dividend Yields
UPS, General Mills, and Best Buy all offer dividend yields near 7%, but each faces distinct concerns. UPS's free cash flow only narrowly covered its $5.5 billion annual payout in 2025, while General Mills has a 127-year dividend record and trades near a 52-week low. Best Buy shares have risen 40% this year, yet most analysts rate them Hold and a new CEO starts November 1.
UPS pays $1.64 quarterly, equal to $6.56 yearly and a 7.13% yield. The payout has stayed unchanged through 2025 and 2026 after $1.63 in 2024. Its 2025 free cash flow of $5.470 billion narrowly missed roughly $5.5 billion in dividends; first-quarter free cash flow of $1.280 billion also fell short of $1.352 billion paid out.
General Mills has paid dividends for 127 straight years and trades near a 52-week low at about 12 times forward earnings, down 27.77% over the past year. Best Buy has gained 40% this year, but 18 of 23 analysts rate it Hold, and a new CEO begins November 1.
Retirees and income-focused investors who hold these stocks could see portfolio income pressured if payouts stay frozen or are reduced, especially where dividends help cover living costs. Workers, suppliers, and communities linked to UPS, General Mills, and Best Buy may also feel effects if restructuring, tariffs, or leadership changes lead to cost cuts or strategy shifts. Analysts’ cautious ratings may prompt some savers to reassess concentration in high-yield holdings.