FEDEX CORP (NYSE:FDX) – A Reliable Dividend Stock Worth Considering

FEDEX CORP (NYSE:FDX) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screen. The company combines a solid dividend profile with good profitability and reasonable financial health, making it an appealing option for income-focused investors.

Dividend Strength

• Dividend Yield: FDX offers a yield of 2.58%, slightly above the S&P 500 average of 2.40%. While not the highest in the market, it remains competitive within its industry, outperforming 81.82% of its peers.
• Dividend Growth: The company has increased its dividend by an average of 14.41% annually over the past five years, demonstrating a strong commitment to rewarding shareholders.
• Reliability: FDX has paid dividends for at least 10 years without any reductions, reinforcing its track record as a dependable income stock.
• Payout Ratio: At 33.69%, the payout ratio is sustainable, indicating that earnings comfortably cover dividend payments.

Profitability & Valuation

• Strong Profit Margins: FDX boasts a Profit Margin of 4.45% and an Operating Margin of 6.80%, ranking among the top performers in its industry.
• Attractive Valuation: With a P/E ratio of 12.87, FDX trades at a discount compared to both its industry peers and the broader S&P 500. Its Forward P/E of 11.15 further supports the case for undervaluation.

Financial Health

• Moderate Leverage: The company maintains a Debt/Equity ratio of 0.73, which is manageable, though slightly higher than some competitors.
• Liquidity: FDX has a Current Ratio of 1.24 and a Quick Ratio of 1.19, indicating sufficient short-term financial flexibility.

For a deeper look into FDX’s fundamentals, review the full fundamental report.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.