Is NYSE:FDX suited for dividend investing?

Last update: Jul 30, 2024

Unearth the potential of FEDEX CORP (NYSE:FDX) as a dividend stock recommended by our stock screening tool. NYSE:FDX maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Assessment of NYSE:FDX

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:FDX has been awarded a 7 for its dividend quality:

FDX's Dividend Yield is a higher than the industry average which is at 2.69.
On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
FDX has been paying a dividend for at least 10 years, so it has 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.
29.11% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.

Assessing Health Metrics for NYSE:FDX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:FDX scores a 5 out of 10:

FDX has a Current ratio of 1.36. This is in the better half of the industry: FDX outperforms 66.67% of its industry peers.
FDX's Quick ratio of 1.32 is fine compared to the rest of the industry. FDX outperforms 72.22% of its industry peers.

Profitability Insights: NYSE:FDX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:FDX has earned a 7 out of 10:

With a decent Return On Assets value of 4.97%, FDX is doing good in the industry, outperforming 72.22% of the companies in the same industry.
FDX has a Return On Equity of 15.68%. This is in the better half of the industry: FDX outperforms 77.78% of its industry peers.
With a decent Return On Invested Capital value of 6.28%, FDX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The last Return On Invested Capital (6.28%) for FDX is above the 3 year average (6.15%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 4.93%, FDX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of FDX has grown nicely.
FDX's Operating Margin of 7.12% is fine compared to the rest of the industry. FDX outperforms 77.78% of its industry peers.
With an excellent Gross Margin value of 70.77%, FDX belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of FDX

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.