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– UPS (NYSE:UPS) is slightly lower after attracting a downgrade from Deutsche Bank to a Hold rating from Buy. The firm warns that stocks known for dividend payments and yield typically underperform in a rising rate environment. UPS’ 2% yield could be become less attractive to investors if bond yields spike.

– Analyst Amit Mehrotra: “We have great respect for UPS’s management team and the turnaround the company is pursuing and achieving. But after the 120%+ increase in equity value per share since our upgrade 21 months ago (+70% vs. S&P 500 and >$100 billion of incremental equity value), we see risk/reward as better balanced…”

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