FedEx Corporation (FDX) today announced a 53.3% dividend increase to $1.15 quarterly per share. Following a detailed review, the FedEx Board of Directors declared a quarterly cash dividend of $1.15 per share on its common stock. This represents a $0.40 per share, or 53 percent, increase from the previous dividend of $0.75. The dividend is payable on July 11, 2022, to stockholders of record as of the close of business on June 27, 2022.
Michael C. Lenz, FedEx Corp. Executive Vice President and Chief Financial Officer, added, “The increased dividend we announced today is the culmination of our Board’s thoughtful efforts over many months to ensure that our capital allocation strategy reflects our confidence in the trajectory of the business and increases returns for our stockholders. We look forward to sharing more detail on our strategy and long-term objectives at our investor day later this month.”
In 2021 FDX hiked its quarterly dividend by 15.4 percent to 75 cents per share, being the first dividend hike by the delivery company since 2018, when a dividend hike of 30 percent to $0.65 per share was announced. The new dividend yield for FedEx is 2.3% at a stock price of $200 and a new annual dividend rate of $4.60 per share. FedEx will now pay shareholders an estimated $1.19 billion in dividends annually.
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The company's segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services. FedEx Corporation has been paying a dividend to shareholders every year since 2002.