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.

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.

While we acknowledge the potential of FDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.