FedEx Updates Annual Dividend Following FedEx Freight Spin-Off

In a shareholder-friendly move, FedEx Corporation’s (FDX) board of directors approved a dividend hike of a 5% increase in the annual dividend rate on FedEx common shares, following a one-time annual rate adjustment in connection with the spin-off of FedEx Freight.The dividend increase and spin-off adjustment led to an annualized dividend rate of $4.88 for the transition period from June 1, 2026, through Dec. 31, 2026. With this updated annualized dividend rate of $4.88, FDX’s board announced a quarterly cash dividend of $1.22 per share, payable on July 7, 2026, to stockholders of record at the close of business on June 22, 2026.FedEx Corporation Dividend Yield (TTM) FedEx Corporation dividend-yield-ttm | FedEx Corporation QuoteClaude F. Russ, FedEx Corp. enterprise vice president and interim chief financial officer, stated, "This dividend increase, coupled with our recent spin-off of FedEx Freight, signals our firm commitment to creating stockholder value. Our dividend is an important element of our disciplined and multifaceted approach to capital allocation."  The move reflects FDX’s intention to utilize free cash to enhance its shareholders’ returns. 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 2026, FedEx paid dividends worth $1.02 billion and repurchased shares worth $796 million. During fiscal 2025, FedEx paid dividends worth $1.33 billion and repurchased shares worth $3.02 billion. During fiscal 2024, FedEx paid dividends worth $1.26 billion and repurchased shares worth $2.50 billion. During fiscal 2023, FedEx paid dividends worth $1.18 billion and repurchased shares worth $1.50 billion. During fiscal 2022, FedEx paid dividends worth $793 million and repurchased shares worth $2.25 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 to 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 #3 (Hold) stock’s bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shareholder-Friendly Moves by Other Transportation Companies in 2026FedEx is not the only player from the Zacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few,on May 5, 2026, Expeditors International of Washington, Inc.’s EXPD board of directors approved a dividend hike of 5.1%, raising its quarterly semi-annual cash dividend from 77 cents per share to 81 cents. The raised dividend will be paid on June 16, 2026, to all its shareholders of record as of June 1. Additionally, in the month of February of this year, EXPD’s board has approved a new share repurchase program, which allows the repurchase of up to $3 billion of its shares. Since 2024, EXPD has returned almost $2 billion to shareholders in the form of dividend payments and share repurchases.Such moves reflect EXPD’s intention to utilize free cash to enhance its shareholders’ returns.On Feb. 04, 2026 (concurrent with its fourth-quarter 2025 earnings release), Old Dominion Freight Line, Inc. (ODFL) board of directors approved a dividend hike of 3.6%, thereby raising its quarterly cash dividend to 29 cents per share ($1.16 annualized) from 28 cents ($1.12 annualized). The raised dividend will be paid out on Mar 18, 2026, to shareholders of record at the close of business on March 4. The move reflects ODFL’s intention to utilize free cash to enhance its shareholders’ returns.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks