Analyzing FEDEX CORP (NYSE:FDX)'s Dividend Potential.

Our stock screening tool has identified FEDEX CORP (NYSE:FDX) as a strong dividend contender with robust fundamentals. FDX exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

A Closer Look at Dividend for FDX

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. FDX has achieved a 7 out of 10:

• FDX's Dividend Yield is rather good when compared to the industry average which is at 4.00. FDX pays more dividend than 81.82% of the companies in the same industry.
• The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
• FDX has paid a dividend for at least 10 years, which is a reliable track record.
• FDX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• FDX pays out 33.69% of its income as dividend. This is a sustainable payout ratio.

Assessing Health Metrics for FDX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. FDX has earned a 5 out of 10:

• With a decent Debt to FCF ratio value of 5.87, FDX is doing good in the industry, outperforming 63.64% of the companies in the same industry.

Profitability Assessment of FDX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For FDX, the assigned 8 is a significant indicator of profitability:

• FDX has a Return On Assets of 4.60%. This is in the better half of the industry: FDX outperforms 77.27% of its industry peers.
• FDX's Return On Equity of 14.65% is amongst the best of the industry. FDX outperforms 81.82% of its industry peers.
• The Return On Invested Capital of FDX (6.22%) is better than 72.73% of its industry peers.
• The 3 year average ROIC (6.15%) for FDX is below the current ROIC(6.22%), indicating increased profibility in the last year.
• The Profit Margin of FDX (4.45%) is better than 81.82% of its industry peers.
• FDX's Profit Margin has improved in the last couple of years.
• FDX has a Operating Margin of 6.80%. This is amongst the best in the industry. FDX outperforms 81.82% of its industry peers.
• The Gross Margin of FDX (70.84%) is better than 95.45% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of FDX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.