MEMPHIS, Tenn. - FedEx Corp. (NYSE: NYSE:FDX) announced a 10% increase in its annual dividend rate for fiscal year 2025, raising the payout to $5.52 per share. The company's Board of Directors also declared a quarterly cash dividend of $1.38 per share, payable on July 9, 2024, to shareholders of record as of June 24, 2024.
Executive Vice President and Chief Financial Officer John W. Dietrich highlighted the dividend hike as a testament to the company's commitment to delivering shareholder value. He emphasized that the dividend increase is a key part of FedEx's disciplined capital allocation strategy, which also includes share repurchases and investments in the business.
FedEx, with annual revenues of $88 billion, provides a wide range of transportation, e-commerce, and business services globally. The company operates a flexible and intelligent network and is focused on achieving carbon-neutral operations by 2040. It is often recognized as one of the world's most respected employers and is committed to connecting people and possibilities in a responsible and resourceful manner.
The press release also contained forward-looking statements regarding expectations for future financial performance and underlying assumptions. These statements, as with all forward-looking statements, are subject to various risks and uncertainties that could cause actual outcomes to differ from those projected.
The information in this article is based on a press release statement from FedEx Corp.
InvestingPro Insights
FedEx Corp.'s (NYSE: FDX) recent announcement of a 10% increase in its annual dividend rate is a reflection of its steady financial performance and commitment to shareholders. This commitment is further underscored by the company's track record of raising its dividend for 3 consecutive years, as noted by an InvestingPro Tip. Moreover, FedEx has maintained dividend payments for 23 consecutive years, showcasing its consistency in returning value to its shareholders.
From a valuation standpoint, FedEx is currently trading at an attractive P/E ratio of 14.36, which is considered low relative to near-term earnings growth. This is particularly significant as it suggests that the stock may be undervalued when considering its earnings potential. Furthermore, with a PEG Ratio of 0.28 for the last twelve months as of Q3 2024, investors are presented with a favorable growth-adjusted valuation metric, which could indicate a potential investment opportunity.
On the operational front, FedEx boasts a robust Gross Profit Margin of 27.65% for the same period, highlighting the company's efficiency in managing its cost of goods sold relative to its revenue. Additionally, the company's prominent position in the Air Freight & Logistics industry, another InvestingPro Tip, suggests that its financial health is backed by a strong industry standing.
For investors seeking further insights and tips, there are additional InvestingPro Tips available for FedEx, which can be accessed through the dedicated page at https://www.investing.com/pro/FDX. Interested readers can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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