FEDEX CORP (NYSE:FDX) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screen. The company combines a solid dividend profile with healthy profitability and financial stability, making it a noteworthy candidate for income-focused portfolios.
Dividend Strength
- Attractive Yield: FDX offers a dividend yield of 2.55%, slightly above the S&P 500 average of 2.40%. While not the highest, it remains competitive within its industry.
- Consistent Growth: The company has increased its dividend at an average annual rate of 14.41% over the past five years, demonstrating a commitment to rewarding shareholders.
- Reliable Track Record: FDX has paid dividends for at least 10 years without reductions, reinforcing its dependability.
- Sustainable Payout: With a payout ratio of 33.69%, the dividend is well-covered by earnings, reducing the risk of cuts.
Profitability & Financial Health
- Strong Margins: FDX boasts a profit margin of 4.45% and an operating margin of 6.80%, outperforming most peers in the air freight and logistics sector.
- Solid Returns: Its return on equity (14.65%) and return on invested capital (6.22%) are above industry averages, indicating efficient capital use.
- Balanced Leverage: While FDX carries some debt (Debt/Equity of 0.73), its liquidity metrics (Current Ratio of 1.24) suggest manageable short-term obligations.
Valuation & Growth Outlook
- Reasonable Valuation: Trading at a P/E of 12.54, FDX appears undervalued compared to both its industry and the broader market.
- Earnings Growth: Analysts expect 11.49% annual EPS growth, which could support further dividend increases.
For a deeper dive, review the full fundamental report on FDX.
Our Best Dividend Stocks screener provides more high-quality dividend ideas updated daily.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
