Both UPS and Expeditors International (EXPD) raised dividends this year, but the financials behind them look different. UPS increased its quarterly payout to $1.64, but there are concerns about sustainability. In the first nine months of 2025, UPS generated $2.7 billion in free cash flow but paid out over $4 billion in dividends. EXPD raised its semi-annual dividend to $0.77 and maintains a safer payout ratio of 25%. The stock is up 31% over the last six months driven by a 4% increase in airfreight tonnage. UPS has struggled with lower shipping volumes and revenue. Currently, EXPD is trading at a premium valuation but has better earnings revisions compared to UPS.