In this article, we discuss 5 best dividend stocks for steady growth. If you want to read our detailed analysis of dividend investing and past returns of dividend stocks, go directly to read 10 Best Dividend Stocks for Steady Growth.
5. FedEx Corporation (NYSE:FDX)
Dividend Yield as of October 4: 2.92%
5-Year Compound Average Dividend Growth Rate: 16.12%
FedEx Corporation (NYSE:FDX) is an American holding company that focuses on transportation, e-commerce, and business services around the globe. In fiscal Q1 2023, the company reported revenue of $23.2 billion, up 5.5% from the same period last year. The company’s operating cash flow stood at over $1.6 billion and its free cash flow was recorded at $323 million.
On August 12, FedEx Corporation (NYSE:FDX) declared a quarterly dividend of $1.15 per share, consistent with its previous dividend. In 2022, the company marked its 21st consecutive year of dividend growth, with a five-year dividend CAGR of 16.12%. As of October 4, the stock has a dividend yield of 2.92%.
In September, Stephens maintained an Overweight rating on FedEx Corporation (NYSE:FDX) with a $200 price target. The firm mentioned that the company has managed its earnings well over the past.
The number of hedge funds tracked by Insider Monkey owning stakes in FedEx Corporation (NYSE:FDX) stood at 63 in Q2 2022, growing from 52 in the previous quarter. These stakes hold a consolidated value of over $1.75 billion.
Artisan Partners mentioned FedEx Corporation (NYSE:FDX) in its Q2 2022 investor letter. Here is what the firm has to say:
“FedEx Corporation (NYSE:FDX), a global shipping and logistics firm, was another relative winner in Q2. Its stock price was mostly unchanged in Q2, which made it a strong outperformer in a weak quarter for US stocks. Over the past 12-18 months, the stock has suffered from weak sentiment as labor cost headwinds and air network disruptions have overshadowed solid top-line trends. However, the stock’s reaction to the company’s first investor day in 10 years may be an early sign that the company is beginning to get more credit for its improved governance. At the investor day, new CEO Raj Subramanian outlined the company’s multi-year financial plan targeting EPS growth of 14%-19% driven by revenue growth of 4%-6% and increased operating margins from technology investments and efficiency gains, as well as an increase in its dividend payout ratio to 25% from ~20%. With the company’s mixed record of achieving its targets, we believe there remains a fair amount of skepticism embedded in the current stock price as it sells at just 10X our estimated normalized earnings power.”
