FDX vs. EXPD: Which Dividend-Paying Stock Reigns Supreme Currently?

Expeditors International of Washington EXPD and FedEx Corporation FDX are prominent names within theZacks Transportation sector. Even amid persistent economic uncertainty, both companies raised dividends this year, underscoring their focus on shareholder returns.

Dividend-paying stocks are known for providing steady income and typically experience less volatility than non-dividend payers. As a result, they are often viewed as dependable vehicles for long-term wealth creation, with dividends helping to offset the effects of economic turbulence — conditions that remain prevalent today.

In May 2025, Expeditors’ board approved a 5.5% boost to its semi-annual dividend, raising the payout from 73 cents to 77 cents per share. The company’s payout ratio stands at 25, and it has delivered a five-year dividend growth rate of 7.4%.

Expeditors International of Washington Dividend Yield (TTM)

Expeditors International of Washington, Inc. dividend-yield-ttm | Expeditors International of Washington, Inc. Quote

Meanwhile, in June, FDX’s board of directors authorized a dividend hike, lifting its quarterly cash dividend to $1.45 per share ($5.8 annualized) from $1.38 ($5.52 annualized). 

FedEx Corporation Dividend Yield (TTM)

FedEx Corporation dividend-yield-ttm | FedEx Corporation Quote

Both transportation companies clearly demonstrate strong dividend-paying capacity. Let us now examine additional key metrics to determine whether EXPD or FDX is the more compelling investment at present.

Price Performance: A Comparative Look

Over the past year, EXPD has handled tariff-driven market volatility and geopolitical challenges better than FDX, as reflected in its stock performance. FedEx’s relatively weaker share price performance primarily stems from revenue pressures, as geopolitical uncertainty and elevated inflation continue to weigh on consumer confidence and growth prospects. Softer demand has also resulted in lower package shipment volumes.

By contrast, EXPD’s solid price performance is being supported by a recovering airfreight environment, with tonnage increasing 4% year over year in the September quarter. The company’s ongoing cost-reduction initiatives have further bolstered its position. Additionally, Expeditors continues to benefit from growth in the e-commerce and technology sectors, highlighting the strength of its underlying business fundamentals.

The growing importance of e-commerce has increased demand for intermodal services, which involve transporting shipping containers over long distances using ships, rail and trucks. While the pace of e-commerce growth has moderated from pandemic-era peaks as economies reopened, demand remains robust due to the convenience of online shopping. This sustained demand should continue to support growth for companies like Expeditors.

1-Year Price Comparison

EXPD Appears More Expensive Than FDX

EXPD currently trades at a forward sales multiple of 1.99X and carries a Value Score of D. In comparison, FDX boasts a Value Score of A and trades at a significantly lower forward sales multiple.

EXPD’s Better Earnings Surprise History

Thanks largely to its cost-control initiatives, EXPD’s earnings have exceeded the Zacks Consensus Estimate in each of the past four quarters, with an average surprise of 13.9%.

Expeditors International of Washington Price and EPS Surprise

Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote

FDX’s earnings, meanwhile, have beaten earnings expectations in three of the last four quarters, missing once, and posted a more modest average surprise of 5.7%.

FedEx Corporation Price and EPS Surprise

FedEx Corporation price-eps-surprise | FedEx Corporation Quote

Conclusion

EXPD’s richer valuation compared with FDX suggests that investors are willing to pay a premium for this leading transportation company. Although trade tensions have shown some signs of easing, uncertainty is likely to persist until durable, long-term trade agreements are finalized. As a result, the ongoing demand weakness — particularly in package volumes — is likely to continue hurting FDX as long as economic uncertainty remains.

EXPD’s stronger share price performance and superior earnings track record indicate that rising airfreight volumes and effective cost-cutting efforts are translating into tangible benefits. Given its stronger overall outlook, EXPD appears to be the more attractive option at present. Notably, EXPD carries a Zacks Rank #2 (Buy), while FDX holds a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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