Is FEDEX CORP (NYSE:FDX) suited for dividend investing?

Our stock screening tool has identified FEDEX CORP (NYSE:FDX) as a strong dividend contender with robust fundamentals. FDX exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

What does the Dividend looks like for 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. FDX has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.68, FDX pays a better dividend. On top of this FDX pays more dividend than 82.61% of the companies listed in the same industry.
• On average, the dividend of FDX grows each year by 14.41%, which is quite nice.
• FDX has paid a dividend for at least 10 years, which is a reliable track record.
• FDX has not decreased their dividend for at least 10 years, which is a reliable track record.
• 33.69% of the earnings are spent on dividend by FDX. This is a low number and sustainable payout ratio.

Analyzing Health Metrics

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. FDX was assigned a score of 5 for health:

• FDX has a better Altman-Z score (2.57) than 60.87% of its industry peers.
• FDX's Debt to FCF ratio of 5.87 is fine compared to the rest of the industry. FDX outperforms 69.57% of its industry peers.

A Closer Look at Profitability for FDX

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. FDX scores a 7 out of 10:

• With a decent Return On Assets value of 4.60%, FDX is doing good in the industry, outperforming 73.91% of the companies in the same industry.
• FDX has a Return On Equity of 14.65%. This is in the better half of the industry: FDX outperforms 78.26% of its industry peers.
• FDX has a better Return On Invested Capital (6.22%) than 69.57% of its industry peers.
• The last Return On Invested Capital (6.22%) for FDX is above the 3 year average (6.15%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 4.45%, FDX is doing good in the industry, outperforming 78.26% of the companies in the same industry.
• FDX's Profit Margin has improved in the last couple of years.
• The Operating Margin of FDX (6.80%) is better than 73.91% of its industry peers.
• FDX has a Gross Margin of 70.84%. This is amongst the best in the industry. FDX outperforms 95.65% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.