FedEx Raises Dividend
June 06 2016 - 6:59PM
Dow Jones News
By Brittney Laryea
FedEx Corp. raised its quarterly dividend 60%, to 40 cents a
share, up from 25 cents previously, on the heels of recent strength
by the Memphis-based package mover.
The hike is significantly higher than the delivery giant's past
two dividend increases. Last June, FedEx raised its quarterly
dividend by 25% to 25 cents a share. Before that, the company
boosted its dividend by 33% to 20 cents in June 2014.
The delivery giant's profits have exceeded analysts'
expectations for the past two quarters, helped by a boom in
e-commerce spending, especially in the latest holiday season.
Online shopping has continued its sharp climb in popularity as
Americans shift their shopping habits away from brick-and-mortar
stores. For shippers like FedEx, more boxes means more
business.
The new dividend is payable July 1 to shareholders who own stock
at the close of business on June 16.
This year, FedEx increased total capital spending to $4.8
billion, with a focus on its ground division, which handles most of
its online business. The company intends to continue the increases
for the next two years. Last month, FedEx acquired Dutch parcel
company TNT Express for 4.4 billion euros ($5 billion), giving it
an extensive ground network in Europe.
Shares of FedEx rose 0.6% to $164.25 after hours.
Write to Brittney Laryea at brittney.laryea@wsj.com
(END) Dow Jones Newswires
June 06, 2016 18:44 ET (22:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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