5 Best Dividend Stocks of 2023

3. FedEx Corporation (NYSE:FDX)

Year-to-date Returns as of April 28: 28.2%

 BMO Capital appreciated FedEx Corporation (NYSE:FDX)’s performance and its management in the current inflationary environment. The firm raised its price target on the stock in April to $260 and maintained a Market Perform rating on the shares.

On April 5, FedEx Corporation (NYSE:FDX) declared a 10% hike in its quarterly dividend to $1.26 per share. This marked the company’s third consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 2.22%, as of April 28.

At the end of Q4 2022, 48 hedge funds in Insider Monkey’s database reported having stakes in FedEx Corporation (NYSE:FDX), with a total value of over $1.48 billion.

Longleaf Partners mentioned FedEx Corporation (NYSE:FDX) in its Q1 2023 investor letter. Here is what the firm has to say:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a top contributor in the quarter. FedEx was another 2022 top detractor after a widely publicized earnings shortfall on the back of a disappointing economic report in the second half. In 1Q 2023, the stock rebounded after revenues were weak as forecasted, but FedEx was able to maintain strong pricing power in the face of rising inflation to improve earnings vs. expectations. FedEx’s important Ground business also beat guidance by a large margin due to effective cost control. Even with weak overall revenues, margins increased by 200 basis points. FedEx aggressively bought back discounted shares, indicating management’s confidence. We believe the company’s earnings power is well over $20 longer term vs. current estimates of $15-16 per share, with additional potential upside. After quarter end, FedEx hosted an investor meeting on its DRIVE program which will improve operations and enable the company to achieve double-digit operating income margins in the near future. FedEx will consolidate Express, Ground and Services into one unified operating company.”