FedEx Corporation (FDX - Free Report) – a leading player in the field of global express delivery services – recently announced a hike in its dividend payout. The move reflects the company’s intention to utilize free cash to enhance shareholders’ returns, thereby boosting investor confidence in the stock.
The Memphis, TN-based company raised its quarterly dividend by 60% to 40 cents a share (or $1.60 annually) from 25 cents (or $1 annually). The new dividend, which has been approved by the company’s board of directors, will be paid on Jul 1, 2016, to stockholders on record as of Jun 16. The shareholder-friendly move has naturally pleased investors, driving the stock in after-market trading on Jun 6. The dividend yield based on the new payout and the last closing market price is approximately 0.98%.
We believe that the raised dividend highlights FedEx’s commitment to create value for shareholders and underscores the company’s strong financial condition and bright prospects going ahead. Moreover, a look at past records reveals FedEx’s stable dividend payment history.
We remind investors that FedEx’s rival, United Parcel Service, Inc. (UPS - Free Report) , had also raised its quarterly dividend by 9% in Feb 2016. Following the hike, the company's quarterly dividend payout now stands at 78 cents per share ($3.12 on an annualized basis).
As investors prefer an income generating stock, a high dividend paying one is much coveted. Needless to say, investors are always on the lookout for companies that have a track record of consistent and incremental dividend payments.
Zacks Rank & Stocks to Consider
FedEx currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader transportation sector include SkyWest, Inc. (SKYW - Free Report) and Air France-KLM SA (AFLYY - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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FedEx Corporation (FDX - Free Report) – a leading player in the field of global express delivery services – recently announced a hike in its dividend payout. The move reflects the company’s intention to utilize free cash to enhance shareholders’ returns, thereby boosting investor confidence in the stock.
The Memphis, TN-based company raised its quarterly dividend by 60% to 40 cents a share (or $1.60 annually) from 25 cents (or $1 annually). The new dividend, which has been approved by the company’s board of directors, will be paid on Jul 1, 2016, to stockholders on record as of Jun 16. The shareholder-friendly move has naturally pleased investors, driving the stock in after-market trading on Jun 6. The dividend yield based on the new payout and the last closing market price is approximately 0.98%.
We believe that the raised dividend highlights FedEx’s commitment to create value for shareholders and underscores the company’s strong financial condition and bright prospects going ahead. Moreover, a look at past records reveals FedEx’s stable dividend payment history.
We remind investors that FedEx’s rival, United Parcel Service, Inc. (UPS - Free Report) , had also raised its quarterly dividend by 9% in Feb 2016. Following the hike, the company's quarterly dividend payout now stands at 78 cents per share ($3.12 on an annualized basis).
As investors prefer an income generating stock, a high dividend paying one is much coveted. Needless to say, investors are always on the lookout for companies that have a track record of consistent and incremental dividend payments.
Zacks Rank & Stocks to Consider
FedEx currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader transportation sector include SkyWest, Inc. (SKYW - Free Report) and Air France-KLM SA (AFLYY - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in 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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