Why NYSE:FDX is a Top Pick for Dividend Investors.

Discover FEDEX CORP (NYSE:FDX)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:FDX showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

ChartMill's Evaluation of Dividend

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:

• Compared to an average industry Dividend Yield of 2.75, FDX pays a bit more dividend than its industry peers.
• The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
• FDX has been paying a dividend for at least 10 years, so it has a reliable track record.
• FDX has not decreased their dividend for at least 10 years, which is a reliable track record.
• FDX pays out 29.11% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for NYSE:FDX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:FDX has earned a 5 out of 10:

• With a decent Debt to FCF ratio value of 6.44, FDX is doing good in the industry, outperforming 61.11% of the companies in the same industry.
• Looking at the Current ratio, with a value of 1.36, FDX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• The Quick ratio of FDX (1.32) is better than 66.67% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:FDX scores a 7 out of 10:

• FDX has a better Return On Assets (4.97%) than 66.67% of its industry peers.
• FDX has a better Return On Equity (15.68%) than 77.78% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 6.28%, FDX is in the better half of the industry, outperforming 61.11% 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.
• FDX has a better Profit Margin (4.93%) than 77.78% of its industry peers.
• FDX's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 7.12%, FDX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 70.77%, FDX belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

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.