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FedEx Raised Its Quarterly Dividend 30%

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FedEx’s dividend in Q1 2019

FedEx (FDX) announced a 30% increase in its quarterly cash dividend on June 11. The quarterly cash dividend of $0.65 per share is payable on July 9 to stockholders of record at the close of business on June 25.

FedEx’s past dividends and growth

In the last few years, FedEx’s dividend per share increased consistently. In the past 18 years, the company’s equity dividend increased 20x. In fiscal 2018, FedEx raised its cash dividends 11.1%, which amounts to $2.0 per share from $1.8 per share in the last fiscal year.

The latest 30% dividend increase represents a rise over the dividend of $0.50 per share paid in the fourth quarter of 2018. In the last ten years, FedEx’s dividend had a compound annual growth rate of 19.4%.

Peer’s dividend and growth

On February 9, UPS (UPS) raised its quarterly cash dividend 10% to $0.91 per share on all of its outstanding Class A and Class B shares. We’ll compare FedEx’s dividends with other less-than-truckload services (XTN) providers. Old Dominion Freight Line (ODFL) announced a 30% rise in its quarterly cash dividend to $0.13 per share from $0.10 per share in the fourth quarter of 2017.

C.H. Robinson Worldwide (CHRW) increased its quarterly dividend 2.2% to $0.46 per share in the fourth quarter of 2017 from $0.45 per share paid earlier. Arcbest (ARCB) kept its quarterly cash dividend intact at $0.08 per share in the last 11 quarters.

In this series, we’ll discuss FedEx’s dividend payout, free cash flow, and dividend yield.

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