Beaten down shares of FedEx (FDX) are soaring.
All after raising its dividend by 53% to $1.15 from 70 cents. It’s payable on July 11 to shareholders of record as of June 27. That’s a yield of about 2.7% at the moment. The company also added three new directors under an agreement with activist investor DE Shaw, and noted that it will focus more on shareholder returns.
“Investors have been speculating about an activist at FDX for years, without one materializing,” writes Stephens analyst Jack Atkins, as quoted by Barron’s. “Now, with a new leadership team and fresh voices on the board (including a proven operator like Mr. Vena), we are hopeful that a new day is dawning at FDX.”
Over the last few months, the FDX stock fell after missing third quarter earnings estimates. The company posted adjusted EPS of $4.59, and $1.5 billion in quarterly operating income from $23.6 billion in sales. Analysts were looking for EPS of $4.65 and $1.6 billion in quarterly operating income on $23.5 billion in sales.
Hopefully, the FDX stock can see higher highs, with its dividend and new director news.