FedEx Rewards Shareholders With 5.1% Hike in Quarterly Dividend

In a shareholder-friendly move, FedEx Corporation’s (FDX) board of directors approved a dividend hike of 5.1%, thereby raising its quarterly cash dividend to $1.45 per share ($5.80 annualized) from $1.38 ($5.52 annualized). The raised dividend will be paid out on July 8, 2025, to stockholders of record at the close of business on June 23, 2025. The move reflects FDX’s intention to utilize free cash to enhance its shareholders’ returns.FedEx Corporation Dividend Yield (TTM) FedEx Corporation dividend-yield-ttm | FedEx Corporation QuoteJohn W. Dietrich, executive vice president and chief financial officer of FedEx, stated, "Increasing our annual dividend for the fifth consecutive year signals FedEx’s continued commitment to creating value for our stockholders. Our capital allocation approach remains disciplined, balancing dividends, share repurchases, and prudent investment in the business."Shares of FDX performed well on the bourse on June 9, 2025, closing the trading session at $222.18 per share, which is up 1.17% from the previous day's closing. The surge comes on the heels of the dividend hike announcement by FedEx’s board of directors, reflecting investor confidence in the stock.Notably, FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging.During the first nine months of fiscal 2025, FedEx paid dividends worth $1.01 billion and repurchased shares worth $2.52 billion. During fiscal 2024, FedEx paid dividends worth $1.26 billion and repurchased shares worth $2.50 billion. During fiscal 2022, FedEx paid dividends worth $793 million and repurchased shares worth $2.25 billion. During fiscal 2023, FedEx paid dividends worth $1.18 billion and repurchased shares worth $1.50 billion.Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like FDX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario. FDX’s management’s decision to increase its quarterly dividend payout reflects the company’s commitment toward boosting shareholder value, apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact thisZacks Rank #4 (Sell) stock’s bottom line.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FedEx is not the only player from theZacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few, Landstar System, Inc. (LSTR), concurrent with its first-quarter 2025 earnings release on May 13, 2025, announced a dividend hike of 11%, thereby raising the quarterly cash dividend to 40 cents per share from 36 cents per share. The raised dividend will be paid on June 24, 2025, to shareholders of record as of the close of business on June 5, 2025.During the first quarter of 2025, Landstar purchased almost 386,000 shares for $60.9 million and paid $83.3 million to shareholders in the form of cash dividends. LSTR is currently authorized to purchase up to an additional 2,161,663 shares under its longstanding share purchase program.  On May 6, 2025, Expeditors International of Washington, Inc.’s EXPD board of directors approved a dividend hike of 5.5%, raising its quarterly semi-annual cash dividend from 73 cents per share to 77 cents. The raised dividend will be paid on June 16, 2025, to all its shareholders of record as of June 2. The move reflects EXPD’s intention to utilize free cash to enhance its shareholders’ returns.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Landstar System, Inc. (LSTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks