Fedex Raises Dividend
FedEx (FDX), the global logistics and delivery giant, has recently raised its annual payout to shareholders by 44 cents, to $5.04, a move that has been well-received by investors. With this dividend increase, FedEx is cementing its position as one of the top dividend stocks in the market.
Investors were particularly pleased with the dividend boost ahead of the company’s investor event, where FedEx announced some significant changes to its corporate structure. The company has consolidated all of its operating companies, including FedEx Express, FedEx Ground, and FedEx Services, into one unit. This move is expected to enhance operational efficiency, reduce costs, and improve service quality.
FedEx will continue to operate its less-than-truckload (LTL) business separately. By keeping the LTL business separate, the company can maintain its focus on serving industrial customers, who have distinct needs and requirements.
CEO Raj Subramaniam commented on the reorganization, stating, “This organizational evolution reflects how we represent ourselves in the marketplace – focused on flexibility, efficiency, and intelligence.” Subramaniam was named CEO-elect in March 2022 and took over on June 1. Under his watch, FedEx has performed well, with shares up about 31% year to date.
The dividend increase is another sign that FedEx is confident in its future growth prospects. The company has a solid track record of increasing dividends, having raised them for 19 consecutive years. The current dividend yield is around 1.7%, which is above the industry average.
In addition to the dividend increase, FedEx’s fiscal-third-quarter numbers, released on March 16, were better than expected, with per-share earnings of $3.41, compared to analyst’s estimate of $2.71. The company’s cost-cutting measures are also beginning to show results, which bodes well for future profitability.
All in all, FedEx is a top dividend stock with a strong track record of performance and a clear strategy for growth. The company’s reorganization and dividend increase demonstrate its commitment to delivering value to shareholders while positioning itself for long-term success. Investors looking for a stable and reliable investment in the logistics and delivery sector should consider FedEx.
FDX Stock Forecast & Analysis
According to a forecast by 30 analysts, the average target price for FedEx Corporation over the next 12 months is USD 220.69, with an average Buy rating. Stock Target Advisor’s analysis is Slightly Bearish, based on 4 positive signals and 8 negative signals. FedEx’s stock price has increased by +2.74% over the past week, +8.33% over the past month, and +3.90% over the last year. As of the last closing, the stock price was USD 226.49.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
