FedEx Corporation (FDX) is gearing up to announce its first-quarter earnings results on Thursday after the market closes. Analysts are anticipating a strong performance, projecting earnings of $4.83 per share, a significant increase from the $4.55 per share reported in the same period last year. The company’s revenue is expected to reach $21.99 billion for the quarter, according to data from Benzinga Pro.
While FedEx is navigating various challenges, including a recent lawsuit filed by the Equal Employment Opportunity Commission (EEOC) alleging disability discrimination, the company’s dividend continues to attract investor attention. Currently, FedEx offers an annual dividend yield of 1.89%, translating to a quarterly dividend payment of $1.38 per share, totaling $5.52 annually.
For investors interested in generating passive income through dividends, FedEx presents a compelling opportunity. To receive a monthly dividend income of $500, or $6,000 annually, you would need to invest approximately $318,089, which equates to about 1,087 shares. If you’re aiming for a more modest $100 per month or $1,200 per year, you would require an investment of $63,501 or roughly 217 shares.
To calculate the necessary investment amount, divide your desired annual dividend income by the annual dividend per share. For example, to earn $6,000 annually, you would divide $6,000 by $5.52, resulting in 1,087 shares. Similarly, for a $1,200 annual income, you would divide $1,200 by $5.52, giving you 217 shares.
It’s important to remember that dividend yields can fluctuate. This is due to changes in both the dividend payment and the stock price. For instance, if the stock price increases, the dividend yield will decrease, even if the dividend payment remains the same. Conversely, if the stock price falls, the dividend yield will rise. Similarly, any adjustments to the dividend payment will directly impact the yield. An increase in the dividend will boost the yield, while a decrease will lower it.
FedEx’s share price saw a 2.2% increase on Monday, closing at $292.63. Investors will be keen to see how the company’s earnings report unfolds and whether it further strengthens its dividend appeal.
