FedEx up 15% on 53% Dividend Raise
Also added Jim Vena, former COO of $UNP and $CNI (a couple of dividend-growers that have done alright over time), to its board, along with Amy Lane from Merrill Lynch's investment banking group.

I still really like the dividend potential $FDX has -- even after this significant bump.

The payout ratio should remain below 25-30% for 2022 and 2023, and EPS/FCF generation should continue to rise along with the company's improving margin profile.

They still need to execute on integrating their TNT acquisition and tiptoe through this market, but things look promising.


Stanley's avatar
$FDX and $UPS just need to keep an eye on $AMZN and their slow growth into the logistics space.
Josh Kohn-Lindquist's avatar
@fatcatinvesting Kind of a niche specialist versus behemoth with optionality type of competition.

I tend to favor the specialists normally in these cases, but $AMZN is obviously a monster and will need to be monitored.
Stanley's avatar
@joryko - $AMZN is already in the space, guess time will tell how aggressively they decide to grow that direction.
Josh Kohn-Lindquist's avatar
@fatcatinvesting Exactly, I just meant that it wasn’t their pure focus right now.

Still doesn’t mean they can’t do damage, but it will take a while at least.
Rihard Jarc's avatar
@fatcatinvesting Good point. A few weeks ago I saw the logistic market share where Amazon just surpassed Fedex. And the pace of market share gaining at $AMZN in the last few years has been crazy.
Dissecting the Markets's avatar
$FDX would pay $4.6 in dividends annually. If the price of the stock was $228, the yield would be 2%. Historically, that places FedEx's dividend near a historical high. I would be buying the stock right now if I had more cash. https://www.macrotrends.net/stocks/charts/FDX/fedex/dividend-yield-history
Josh Kohn-Lindquist's avatar
@dissectmarkets very true.

And if they can get around the $20 EPS for the next couple years it should balloon further. Really lucky to have brought it and $LOW into the fold this year.
Dissecting the Markets's avatar
@joryko thoughts on $AVGO and $LRCX right now? They're aggressive dividend growth stocks.
Josh Kohn-Lindquist's avatar
@dissectmarkets Both are held in my Dividends500 tracking portfolio on CAPS I believe and I also own a tiny bit of $LRCX personally.

I really like Lam’s niche and will add to it over time, but $AVGO I don’t know as much about other than it qualifies for the portfolio, which gives it a good head start. 😂

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