FedEx Q3 Earnings Anticipation
FedEx Corporation FDX will unveil its earnings for the third quarter post-market on March 21, 2024.
Market analysts foresee Fedex to reach $3.46 per share for the quarter, showing growth from $3.41 a year ago. Revenue is expected to stand at $22.06 billion, as reported by Benzinga Pro.
Collaboration Buzz and Dividend Excitement
Following a significant split, FedEx and Amazon.com Inc AMZN reportedly engaged in discussions for potential collaborations. One such idea involved FedEx accepting returns from Amazon at its retail spots, as highlighted in a WSJ report.
The talk around FedEx has piqued investor interest in the company’s dividends. Currently, FedEx boasts a 1.94% dividend yield amounting to $1.26 per share quarterly ($5.04 annually).
Unlocking Dividend Earnings
To realize $500 monthly income from FedEx, the game plan begins with a target of $6,000 yearly ($500 x 12 months).
Dividing this by FedEx’s $5.04 dividend gives 1,190 shares required to achieve the goal: $6,000 / $5.04 = 1,190 shares.
An investor would need approximately $309,388 in FedEx stocks (1,190 shares) to generate a $500 monthly dividend income.
For a more modest target of $100 monthly ($1,200 annually), the calculation remains the same: $1,200 / $5.04 = 238 shares, or $61,878 to yield $100 monthly dividend.
Understanding Dividend Yield Dynamics
It’s vital to note that dividend yield is susceptible to fluctuations with changes in both dividend payments and stock prices.
The dividend yield reflects the annual dividend payment divided by the current stock price. Hence, as stock prices sway, so does dividend yield ratio. For example, if a stock with a $2 annual dividend priced at $50 shifts to $60, the yield declines from 4% to 3.33%.
Moreover, variations in the dividend payment itself further influence the dividend yield. A company hiking its dividend will raise the yield, even with a stable stock price. Conversely, reduced payouts lead to a lower yield.
Market Performance Snapshot
FDX Price Action: FedEx shares surged 1.3% to conclude at $259.99 on Wednesday.
