Is NYSE:FDX suited for dividend investing?

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.

Evaluating Dividend: NYSE:FDX

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:FDX has achieved a 7 out of 10:

• FDX's Dividend Yield is rather good when compared to the industry average which is at 2.79. FDX pays more dividend than 84.21% of the companies in the same industry.
• The dividend of FDX is nicely growing with an annual growth rate of 14.41%!
• FDX has paid a dividend for at least 10 years, which is 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.
• 33.49% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.

Health Analysis 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:

• FDX has a better Debt to FCF ratio (7.57) than 68.42% of its industry peers.

What does the Profitability looks like for NYSE:FDX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:FDX, the assigned 7 is noteworthy for profitability:

• The Return On Assets of FDX (4.54%) is better than 73.68% of its industry peers.
• FDX has a better Return On Equity (14.67%) than 78.95% of its industry peers.
• With a decent Return On Invested Capital value of 6.07%, FDX is doing good in the industry, outperforming 68.42% of the companies in the same industry.
• FDX's Profit Margin of 4.44% is fine compared to the rest of the industry. FDX outperforms 78.95% of its industry peers.
• In the last couple of years the Profit Margin of FDX has grown nicely.
• With a decent Operating Margin value of 6.65%, FDX is doing good in the industry, outperforming 78.95% of the companies in the same industry.
• The Gross Margin of FDX (70.74%) is better than 94.74% of its industry peers.

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.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.