FedEx: Why This Dividend Growth Stock Remains A Buy Now

Apr. 24, 2024 7:30 AM ETFedEx Corporation (FDX) StockFDX13 Comments
Kody's Dividends
10.03K Followers

Summary

  • Since I initiated a buy rating on FedEx, the stock has slightly outperformed the market.
  • The transportation juggernaut's topline missed the analyst consensus in its fiscal third quarter while non-GAAP EPS topped expectations.
  • FedEx's interest coverage ratio through the first three quarters of fiscal year 2024 suggests it is financially healthy.
  • Shares could be priced 11% below fair value from the current share price.
  • FedEx appears to be positioned for future outperformance as well.

FedEx truck on a freeway in Sacramento

A FedEx truck travels down a freeway while on route.

slobo/iStock Unreleased via Getty Images

As a dividend growth-focused contributor here on Seeking Alpha, I have touted the appeal to dividend growth investing on numerous occasions over the years. This

This article was written by

10.03K Followers
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FDX, UPS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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