The latest earnings from UPS (NYSE: UPS) were well received by the market, easing concerns that a combination of higher interest rates and rising fuel costs might put pressure on its delivery volumes and margins in the quarter. In the end, UPS delivered a solid quarter, and management sounded confident about the company's future margin expansion and the sustainability of the dividend, which currently yields 6%. It sets the company up as a potentially attractive investment for income-focused investors. There is always a range of outcomes in an investment, and the key driver for UPS is its future margin expansion in its core U.S. Domestic Package segment.
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