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

Our stock screener has spotted FEDEX CORP (NYSE:FDX) as a good dividend stock with solid fundamentals. NYSE:FDX shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NYSE:FDX

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:FDX scores a 7 out of 10:

• FDX's Dividend Yield is a higher than the industry average which is at 2.62.
• 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 their dividend for at least 10 years, which is a reliable track record.
• 31.68% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.

Evaluating Health: NYSE:FDX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FDX has achieved a 5 out of 10:

• The Debt to FCF ratio of FDX (7.75) is better than 61.11% of its industry peers.

How do we evaluate the Profitability for NYSE:FDX?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FDX was assigned a score of 7 for profitability:

• With a decent Return On Assets value of 4.66%, FDX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
• FDX has a better Return On Equity (14.87%) than 77.78% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 5.98%, FDX is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
• With a decent Profit Margin value of 4.61%, FDX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
• FDX's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 6.69%, 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 70.49%, 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.

Check the latest full fundamental report of FDX for a complete fundamental analysis.

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.