April 19, 2025 a 03:31 am
FDX: Dividend Analysis - FedEx Corporation
FedEx Corporation demonstrates a solid commitment to returning value to its shareholders through steady dividends and growth. With a 24-year history of consistent dividends, FedEx has shown resilience and reliability in its payout strategy. The company's strategies reflect a blend of moderate growth and stability, suitable for dividend-focused investors.
Overview
The overview of FedEx's dividend profile provides insights into the company's sector and key dividend indicators.
| Metric | Details |
|---|---|
| Sector | Transportation |
| Dividend Yield | 2.24% |
| Current Dividend per Share | 5.08 USD |
| Dividend History | 24 years |
| Last Cut or Suspension | None |
Dividend History
FedEx's dividend history is crucial as it provides evidence of the company's commitment to sharing profits with shareholders. Regular and uninterrupted dividend payments are a positive indicator for potential and current investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.38 |
| 2024 | 5.40 |
| 2023 | 4.93 |
| 2022 | 4.20 |
| 2021 | 2.90 |
Dividend Growth
Dividend growth rates provide valuable insight into a company's potential for increasing shareholder value. Steady growth contributes to investor confidence and potential reinvestment strategies.
| Time | Growth |
|---|---|
| 3 years | 23.03% |
| 5 years | 15.74% |
The average dividend growth is 15.74% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
A favorable payout ratio indicates that a company is not overextending its financial resources, while maintaining a commitment to paying dividends. FedEx's payout ratio reflects sustainability in balancing dividends with profitability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.10% |
| Free Cash Flow-based | 35.45% |
With an EPS payout ratio of 31.10% and an FCF payout ratio of 35.45%, FedEx demonstrates prudent financial management, ensuring adequate reinvestment while delivering returns to shareholders.
Cashflow & Capital Efficiency
Strong cash flow metrics underpin FedEx's ability to finance dividend payments and drive growth. They also reflect the company’s underlying operational health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.98% | 4.77% | 5.20% |
| Earnings Yield | 6.88% | 7.17% | 6.48% |
| CAPEX to Operating Cash Flow | 62.27% | 70.04% | 68.79% |
| Stock Compensation to Revenue | 0.19% | 0.20% | 0.20% |
| Free Cash Flow/Ops. Cash Flow Ratio | 37.73% | 29.96% | 31.21% |
FedEx has exhibited strong cash flow stability and efficient capital allocation, which supports sustainable growth and dividend payments.
Balance Sheet & Leverage Analysis
A healthy balance sheet with manageable leverage is fundamental to FedEx's financial health. These metrics provide insights into the company’s long-term solvency and ability to meet financial obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity Ratio | 1.37 | 1.47 | 1.49 |
| Debt-to-Assets Ratio | 43.35% | 44.00% | 43.25% |
| Debt-to-Capital Ratio | 57.76% | 59.50% | 59.86% |
| Net Debt to EBITDA | 2.87 | 2.97 | 3.10 |
| Current Ratio | 1.36 | 1.37 | 1.43 |
| Quick Ratio | 1.32 | 1.33 | 1.38 |
| Financial Leverage | 3.15 | 3.34 | 3.45 |
FedEx maintains a robust financial structure, balancing leverage with operational cash flows, which supports strategic growth and dividend sustainability.
Fundamental Strength & Profitability
Assessing profitability and fundamental strength provides insights into FedEx’s operational efficiencies and sustainable competitive advantage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 15.70% | 15.23% | 15.34% |
| Return on Assets | 4.98% | 4.56% | 4.45% |
| Margins: Net | 4.94% | 4.41% | 4.09% |
| Margins: EBIT | 7.50% | 7.13% | 6.20% |
| Margins: EBITDA | 12.39% | 11.76% | 10.44% |
| Margins: Gross | 21.61% | 21.26% | 21.57% |
| Research & Development to Revenue | 0% | 0% | 0% |
FedEx exhibits strong profitability metrics, highlighting effective resource utilization and competitive positioning across industry benchmarks.
Price Development
Dividend Scoring System
| Criteria | Score | Visualization |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
Rating
In conclusion, FedEx Corporation presents a well-rounded dividend profile that merits consideration for income-focused investors. Despite moderate growth, the robust dividend history and sound financial management contribute to its attractiveness as a reliable investment.