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Zacks' 7 Best Strong Buy Stocks (New Research Report)
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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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FedEx (FDX) Share Price Increases on Dividend Hike of 10%
Shares of FedEx Corporation (FDX - Free Report) performed well on the bourse on Jun 10, 2024, closing the trading session at $253.72 per share, up 2.42% from the previous day's closing. The upside was owing to the dividend hike announcement by FedEx’s board of directors.
In a shareholder-friendly move, FDX’s board of directors has approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.26 ($5.04 annualized) per share to $1.38 ($5.52 annualized).
The raised dividend will be paid out on Jul 9, 2024, to shareholders of record at the close of business on Jun 24, 2024. The move reflects FDX’s intention to utilize free cash to enhance its shareholders’ returns.
FedEx Corporation Dividend Yield (TTM)
FedEx Corporation dividend-yield-ttm | FedEx Corporation Quote
FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In April 2023, FedEx raised its quarterly dividend by 10% to $1.26 per share. Prior to this, in June 2022, FedEx raised its quarterly dividend by 53% to $1.15 per share.
During the first nine months of fiscal 2024, FedEx paid dividends worth $949 million and repurchased shares worth $2,000 million. In fiscal 2023, FedEx paid dividends worth $1,177 million and repurchased shares worth $1,500 million. During fiscal 2022, FedEx paid dividends worth $793 million and repurchased shares worth $2,248 million.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like FDX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
FDX’s management’s decision to increase its quarterly dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact this Zacks Rank #3 (Hold) stock bottom line.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FedEx is not the only player from theZacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few, in January 2024, GATX Corporation’s (GATX - Free Report) board of directors announced a dividend hike of almost 5.5%, thereby raising its quarterly cash dividend from 55 cents per share to 58 cents. Notably, 2024 marks the 106th consecutive year of GATX paying out dividends.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , (on Feb 14, 2024) announced a 17.6% dividend increase, thereby raising its quarterly cash dividend from 17 cents per share to 20 cents. Additionally, WAB’s board announced a $1 billion share buyback authorization.
On Feb 2, 2024, Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report) board of directors approved a dividend hike of 14.2%, thereby raising its quarterly cash dividend from 14 cents per share to 16 cents. Notably, KNX has raised its quarterly dividend five times in the past five years for a 167% overall increase.