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MEMPHIS, Tenn. - FedEx Corp. (NYSE: FDX) announced an increase in its annual dividend rate by 5%, raising it to $5.80 per share for the fiscal year 2026. This move, approved by the company’s Board of Directors today, marks the fifth consecutive year of dividend growth for the global shipping giant. According to InvestingPro data, FedEx has maintained dividend payments for 24 consecutive years, with the current yield standing at 2.51%.
The Board also declared a quarterly cash dividend of $1.45 per share, which is slated to be paid on July 8, 2025, to stockholders of record as of the close of business on June 23, 2025. This decision underscores FedEx’s ongoing strategy to enhance stockholder value through consistent dividend payouts and share buybacks, as highlighted by InvestingPro analysts.
John W. Dietrich, FedEx’s executive vice president and chief financial officer, commented on the dividend increase, emphasizing the company’s dedication to delivering value to its stockholders. He noted that FedEx’s approach to capital allocation is balanced, taking into account dividends, share repurchases, and prudent investment in the business.
FedEx, with annual revenues of $87.81 billion and a market capitalization of $53.14 billion, provides a wide array of transportation, e-commerce, and business services worldwide. Trading at a P/E ratio of 13.79, InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model. The company is known for its flexible and intelligent global network and is often recognized as one of the world’s most respected employers. With a workforce exceeding 500,000, FedEx is committed to maintaining high standards of safety, ethics, and professionalism. Additionally, the company has set a goal to achieve carbon-neutral operations by 2040, reflecting its dedication to responsible and resourceful global connectivity.
The information in this article is based on a press release statement from FedEx Corp.
In other recent news, FedEx Corporation has been the focus of several analyst reports and company updates. UBS analyst Thomas Wadewitz recently adjusted the price target for FedEx shares to $311, down from $331, but maintained a Buy rating, citing a more challenging international business environment in the fourth quarter of fiscal year 2025. Meanwhile, JPMorgan analysts lowered their price target for FedEx to $260 from $280, maintaining an Overweight rating due to concerns about stagnant demand and tariff uncertainties. On a positive note, Truist Securities reiterated a Buy rating with a $275 price target, emphasizing the potential value from the planned spin-off of FedEx Freight in 2026.
FedEx has also achieved a significant milestone by earning the CEIV Pharma Certification for its global ground handling operations, highlighting its adherence to high standards in pharmaceutical logistics. This certification underscores FedEx’s capability to manage pharmaceutical products in compliance with stringent industry regulations. Additionally, the company announced the appointment of John Smith as President and CEO of FedEx Freight, effective June 1, 2026. Smith’s extensive experience and successful leadership within FedEx are expected to benefit the Freight division as it transitions to a standalone entity.
The upcoming earnings call on June 24 is anticipated to address several key topics, including capacity utilization and a recent contract with Amazon for big-and-bulky items. Analysts are also keen to hear about FedEx’s EPS outlook, which is expected to align with consensus estimates for fiscal year 2026. Despite some near-term challenges, these developments reflect ongoing strategic moves and achievements by FedEx.
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