Should You Buy FedEx Corporation (FDX) for its Dividend?

FedEx Corporation (NYSE:FDX) is included among the 13 Best Industrial Dividend Stocks to Buy Right Now.

Should You Buy FedEx Corporation (FDX) for its Dividend?

A driver unloading packages from a van for a time-critical delivery.

The American multinational holding company specializes in transportation, e-commerce, and business services. The company is taking steps to improve its current operations while positioning itself to benefit from future growth areas, especially in e-commerce.

On June 9, FedEx Corporation (NYSE:FDX) declared a 9.1% increase in its quarterly dividend to $1.45 per share. Through this increase, the company stretched its dividend growth streak to five years. As of July 13, the stock has a dividend yield of 2.46%. FDX is a reliable option for income investors, as its payout ratio is approximately 33%, which is not only manageable but also provides the company with ample room to continue increasing its dividend.

FedEx Corporation (NYSE:FDX) is a reliable logistics company poised to gain from the ongoing expansion of e-commerce and global trade. While it might require some patience, it’s not a stock to count out, thanks to its well-established brand, extensive network, and solid positioning to capitalize on economic growth.

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Disclosure: None.