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FedEx (FDX) Rewards Shareholders With 15% Dividend Hike

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In a shareholder-friendly measure, FedEx Corporation (FDX - Free Report) announced a 15% hike in its quarterly dividend. The move underscores the company’s sound financial position and its commitment to reward shareholders.

FedEx raised its dividend by 10 cents to 75 cents per share (or $3 annually). The amount will be paid out on Jul 12, to shareholders of record as of Jun 28.

The company is benefiting significantly from the coronavirus-driven surge in e-commerce demand. Higher volumes across all segments are boosting the company’s top line, as reflected in the 23% year-over-year rise in total revenues in the third quarter of fiscal 2021. The Ground unit is benefiting from residential delivery volume growth, while the Express division is generating higher revenues on the back of international export and U.S. domestic-package volume growth. Meanwhile, increased average daily shipments are driving Freight segment revenues. Amid this buoyancy, the fact that the company would raise its dividend was not unexpected.


Investors always prefer an income-generating stock. Hence, a high-dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.

Zacks Rank & Other Key Picks

FedEx carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) . While Expeditors and Covenant Logistics sport a Zacks Rank #1 (Strong Buy), C.H. Robinson carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 26%, 68% and 75% in a year’s time, respectively.

Zacks Names “Single Best Pick to Double”

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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

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