United Parcel Service (UPS) is grappling with declining revenues and stagnant net income margins, raising concerns about its long-term financial stability. Despite an attractive valuation, the company's high dividend payout ratio of 86.6% casts a shadow over the sustainability of its ~7.4% yield. This analysis delves into the challenges posed by Amazon's expanding logistics network, consumer spending shifts, and global trade tensions, while exploring potential catalysts like renewed USPS partnerships and increased automation. The current assessment suggests a 'Hold' rating for UPS, awaiting clearer indications of dividend sustainability and improved operational efficiency.