How Safe Are UPS' Dividends? - Motley Fool United Parcel Service, which operates in the air freight and logistics industry, currently pays a dividend of 2.9%. That's certainly nothing to sneeze at, as the average dividend payer in the S&P 500, in 2009, sported a yield of 2%. But what's more important than the dividend itself is United Parcel Service's ability to keep that cash rolling. The first thing to look at is the company's reported dividends versus its reported earnings. If you happen to see dividend payments that are growing faster than earnings per share, it may be an initial signal that something just isn't right. Clearly, there doesn't seem to be a problem here. United Parcel Service has been able to boost its earnings at an adequate pace and keep its dividends in check at the same time.