FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean freight forwarding and cargo transportation, specialty transportation, customs brokerage, third party logistics and supply chain, and document and business solutions, as well as provides trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

FedEx looks like a mature business story, but not a cheap one in terms of business quality: in terms of revenue and profit, the company remains large and resilient, but some of its margins and returns are noticeably below industry benchmarks. P/S and P/FCF are below the industry median, which supports the case for undervaluation, while P/E and P/B are roughly in line with the sector and do not offer a strong discount. At the same time, the debt burden is above the industry median, and long-term debt has increased over recent periods, which limits the potential for a re-rating. Liquidity is generally acceptable: the quick ratio is above the median, the current ratio is around normal, and the cash position has improved significantly. The company’s strength is its very high gross margin and growth in gross profit, which points to good control over the core economics of transportation and logistics. The weakness is that net and operating margins remain significantly below the industry, so the conversion of revenue into profit does not yet look like the best in the sector. ROE and ROI are at acceptable levels, but ROA and return on tangible equity lag industry figures, indicating less-than-ideal efficiency in using assets and capital. Dividend yield has declined compared with last year, so the dividend factor does not currently strengthen the investment case. The trend shows growth in revenue, EBITDA, cash, and equity, which is a positive for the valuation, but this progress is partly offset by weak profitability and elevated leverage. Overall, the fundamentals support a moderately cautious view: the business is high-quality and sizable, but not strong enough in efficiency to justify an aggressive increase in the target valuation. For an investor, this means there is upside potential, but it should depend primarily on further margin improvement and debt discipline rather than on the current multiples alone.

FedEx Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, без изменений. Рынок на стороне быков.

Medium index, flat. The market is on the bulls' side.

Слабый индекс, незначительно вырос

FedEx has strong gross margin and revenue growth, but weaker net/operating profitability than the industry and higher debt, so the valuation looks only moderately attractive.

Key Points
Kimberly-Clark has raised it for 54 years running and currently pays a forward dividend yield of 5.2%.
FedEx has doubled its dividend over the past five years, currently offering a forward yield of 1.6%.
Realty Income owns a highly diversified property portfolio and currently yields 5.5%.
With the S&P 500 (SNPINDEX: ^GSPC) currently yielding around 1%, investors can find far better income opportunities in individual stocks. Three unstoppable businesses with durable competitive moats yielding 1.6% to 5.5% are Kimberly Clark (NASDAQ: KMB), FedEx (NYSE: FDX), and Realty Income (NYSE: O). These companies provide products and services people rely on every day, which can support dividends for years to come.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Kimberly-Clark: Paying dividends from everyday brands
Consumer staples companies that sell everyday essentials can make excellent dividend stocks. Kimberly-Clark owns Cottonelle, Kleenex, and Huggies, along with other recognizable personal care brands. People buy these products in good times and bad, helping the company deliver steady financial results that can fund a growing dividend.
The company's current quarterly dividend stands at $1.28 per share, or $5.12 annualized. That puts the forward yield at about 5.2%. That's attractive for a business that has increased its dividend for 54 years, making Kimberly-Clark one of the elite Dividend Kings that have increased their dividends for at least 50 years.
The dividend has grown at a 3.3% compound annual rate over the past five years. While the payout is elevated -- about 86% of earnings and 92% of free cash flow -- analysts expect earnings to grow at roughly 2% annually in the coming years, which should support the company's dividend-growth streak.
Kimberly-Clark has held up well in a challenging consumer spending environment. It reported a slight increase in sales last quarter despite headwinds in China. The company is also investing in its alternative fiber program, designed to improve product performance, drive long-term growth, and reduce sensitivity to commodity cost swings, thereby strengthening margins and supporting the dividend.
With the stock recently dipping, investors have a chance to buy a high-quality consumer staple at an unusually high yield.
FedEx: Scale and free cash flow fund growing dividends
FedEx is one of the leading carriers, with a massive scale that helps generate strong cash flow. It produced $5.1 billion in trailing free cash flow on $95 billion of revenue. FedEx pays a quarterly dividend of $1.22, or $4.88 annualized, for an above-average forward yield of about 1.6%. Over the past five years, it has grown the dividend at a 17% annual rate, and given its relatively low payout ratio of 27% relative to free cash flow, it has plenty of room to grow it.
FedEx operates in a competitive industry, but its moat comes from its highly efficient global network, which moves roughly $2 trillion worth of commerce every year. Its scale across package sortation, air and ground fleets, and international shipping is difficult and expensive to replicate.
There's also clear momentum. Management expects earnings growth to accelerate in the second half of the year, driven by the consolidation of Express and Ground into a single operation -- an initiative that should be 62% complete by the end of 2026. This initiative can reduce costs and lift margins, thereby supporting continued dividend growth.
Analysts expect earnings to grow at a 11% annualized rate in the coming years. With a reasonable forward price-to-earnings multiple of about 17.5x, the stock's valuation and dividend profile could make FedEx a rewarding long-term holding.
Realty Income: Paying monthly dividends for 57 years
Realty Income is a quality real estate investment trust (REIT) that has paid a monthly dividend for 57 consecutive years and increased its dividend for 29 years. The current monthly payment is $0.2715 per share, or $3.26 annualized, bringing the forward yield to about 5.5%. And that dividend has grown at a 2.9% annualized rate over the past five years.
The company owns a diversified portfolio of about 15,500 properties across all 50 states, the U.K., and eight other European countries. Its dividend record reflects disciplined underwriting -- management focuses on acquiring properties that meet return targets and are positioned to benefit from secular tailwinds that can support durable cash flows.
Right now, management sees opportunities in digital infrastructure and industrial demand. On June 30, it announced a $6 billion data center joint venture with Cloud Capital. Management believes the investment can produce attractive long-term returns as demand for data center capacity continues to outpace supply.
Year to date, adjusted funds from operations are up 5% year over year, and portfolio occupancy is near 99%. With a long history of paying (and steadily increasing) monthly dividends from a diversified property base, Realty Income looks positioned to continue rewarding long-term income investors.
Should you buy stock in Kimberly-Clark right now?
Before you buy stock in Kimberly-Clark, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kimberly-Clark wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $406,141!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,347,745!*
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*Stock Advisor returns as of September 18, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Unstoppable Dividend Stocks to Buy Now (1 Yields 5.5%)

Key Points
The dividend has risen for 32 straight years.
Many of America's top companies lease its properties.
Realty Income (NYSE: O) often escapes the notice of both investors and average Americans alike. Although many people may not recognize its name, they likely spend time in some of its nearly 15,600 properties regularly.
The company has existed since 1969, and it became a real estate investment trust (REIT) in 1994. It's payout has steadily risen over that 32-year history, and today, one has to buy 336 shares for around $20,600 to generate $1,000 in annual dividend income.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, whether that payout is sustainable means understanding its business and how much cash it generates. Let's take a closer look to see whether investors can truly trust its dividend.
The state of Realty Income
Realty Income specializes in net leased, single-tenant commercial properties. Under these arrangements, the tenants cover the costs of maintenance, insurance, and property taxes.
Properties like this have become increasingly popular for some of America's best-known companies. Walmart, Dollar General, and FedEx are among Realty Income's tenants, giving the company a stable revenue base.
Additionally, its properties were 98.8% occupied as of the end of the second quarter of 2026. These consistently high occupancies prompted it to buy or develop more of these properties over the years. The company slightly trimmed its property count in 2025 to unload properties it could not lease, but it has again added properties in 2026. Hence, its property base remains on a long-term growth trajectory.
The Realty Income dividend
Realty Income stands out as a dividend payer by making 12 dividend payments annually and even billing itself as the "monthly dividend company."
Moreover, it has raised its dividend every year since the 1994 IPO and typically passes along modest payout hikes every few months. Today's annual dividend stands at just over $3.25 per share, and shareholders benefit from a dividend yield of 4.85%, well over the S&P 500 (SNPINDEX: ^GSPC) average of 1.04%. Also, given the stock's performance over the current decade, the dividend is the primary source of returns.
The good news is that Realty Income's dividend is sustainable. Over the trailing 12 months, it earned $4.27 per share in funds from operations (FFO) income, a measure of the REIT's free cash flow. This is well above the $3.25-per-share dividend, leaving room for payout hikes and investment in the business.
Also, while most dividend stocks can theoretically cut dividends at any time, REITs like Realty Income must pay out at least 90% of their net income as dividends, making it unlikely that shareholders will lose this monthly income stream.
Furthermore, abandoning a 32-year streak of dividend increases tends to undermine confidence in a stock. Realty Income pays out well over 90% of its income, making a dividend cut theoretically possible. Still, given its aforementioned sustainability, investors can expect the payout hikes to continue.
Finally, Realty Income compares well with fixed-income investments such as bonds or certificates of deposit (CDs). While stock prices often fall and can struggle for years to move higher, with the 10-year Treasury at 4.80% as of this writing, Realty Income's dividend is generating higher cash returns than most fixed-income options.
Additionally, fixed-income instruments do not offer payout increases or the potential for long-term stock returns that could further boost total returns. Thus, if one can hold Realty Income over the long term, it makes sense for income investors to choose it over bonds or CDs.
Investing in Realty Income
Investors can almost certainly rely on Realty Income to earn a stream of income that is generous, rising, and, most importantly, sustainable.
Admittedly, the REIT is not as low-risk as a fixed-income instrument, and payout hikes and falling stock prices pose risks.
Fortunately, the company benefits from a high occupancy and a client base that can be relied on to cover lease payments. Moreover, it has long been in a growth mode, as evidenced by its 32-year streak of payout hikes that lag its FFO income. This means that if one is willing to hold Realty Income stock for the long term, dividend and stock price growth should sustainably deliver profits to its shareholders.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

All It Takes Is 336 Shares of Realty Income Stock to Generate $1,000 in Yearly Dividends. Here's Whether the Payout Is Safe.

Air T, Inc.’s AIRT investors have been experiencing some short-term gains from the stock lately. Shares of the Minneapolis, MN-based holding company gained 44.7% in the past three months against the industry’s 5.4% decline. It has also outperformed the sector’s loss of 2.5% and the S&P 500’s gain of 0.1% in the same time frame.
A major development of AIRT in recent months includes the announcement of its promising first-quarter fiscal 2027 results in August. In the fiscal first quarter, the company reported higher sales, mainly driven by a full quarter of Rex operations and contributions from the new aviation leasing and asset management segment. Air T operates through six reportable segments. Overnight air cargo revenues were relatively stable, commercial aircraft, engines and parts declined on softer leasing and parts activity, ground support equipment was hurt by order timing, while digital solutions benefited from growth in data analytics and airspace management.
Management highlighted Rex’s operational transformation and the expansion of Crestone following the Arena acquisition. Aircraft availability remains a key constraint at Rex, with network restoration and fleet growth among management’s priorities. Air T remains confident in the long-term prospects of both Rex and Crestone.
AIRT’s Three Months Price Comparison
Over the past three months, the stock’s performance has remained strong, outperforming its peers like FedEx Corporation FDX and United Parcel Service, Inc. UPS. FedEx and United Parcel’s shares have lost 3.5% and 6.5%, respectively, in the same time frame.
Despite broader risks from fuel and foreign exchange volatility, geopolitical conditions and an uncertain macroeconomic environment, the favorable share price movement suggests AIRT is well-positioned to sustain its positive momentum at present.
Air T is a diversified holding company with a portfolio of aviation-focused businesses. Its operations span passenger and cargo services, aircraft and engine leasing and parts, maintenance and support services, specialized ground equipment, digital aviation solutions and aviation asset management.
AIRT's Strategic Expansion Drives Growth
Rex gives Air T a meaningful presence in Australian regional aviation, with management focused on restoring the airline’s operating foundation. Increasing aircraft availability and rebuilding the network could allow Rex to serve more routes and capture additional passenger demand. Its fully owned fleet also provides flexibility to adjust aircraft utilization as demand changes. Continued progress in restoring active aircraft and network connectivity could therefore strengthen Rex’s contribution to AIRT over time.
Crestone’s acquisition of Arena strengthens Air T’s aviation leasing and asset-management platform by combining complementary capabilities and expanding its international presence. The business generates fees from origination, due diligence and asset management, while its relationships with external capital partners can support additional investment activity without relying entirely on its own capital. The combination also creates opportunities for collaboration with AIRT’s other specialized aviation businesses.
Digital solutions continue to gain traction through expanding data analytics and airspace-management engagements. Its emphasis on recurring subscription revenues gives the business greater revenue visibility, while recent operating improvement indicates that growth is translating into a stronger contribution. Further customer adoption and engagement growth could increase the segment’s importance within Air T’s portfolio.
Air T’s Established Businesses Add Support
Overnight air cargo provides an established earnings base, supported by Air T’s longstanding relationship with FedEx and its integrated cargo, maintenance and aircraft-support capabilities. The business has demonstrated relatively stable segment profitability, while expanded labor and project activity at WASI has strengthened its contribution. This established operating base provides support as AIRT develops its newer businesses.
Air T’s capital-allocation strategy includes opportunistic share repurchases, providing another avenue for enhancing per-share value. Management has reduced the share base over time, net of issuances, demonstrating a willingness to deploy capital toward its own shares when it sees an attractive opportunity. Continued discipline around repurchases could complement growth across AIRT’s operating businesses and support longer-term shareholder value creation.
Challenges Ahead of AIRT
Rex’s aircraft availability remains a key challenge for Air T, as unscheduled engine removals and extended third-party maintenance, repair, and overhaul facilities (MRO) turnaround times are constraining the active fleet and could slow network restoration. Commercial aircraft, engines and parts softness is another concern, with lower leasing and component sales at Contrail, materials-program delays and limited parts inventory at AirCo and slower MRO exchange and repair activity at Worthington weighing on AIRT’s segment performance.
Air T Stock’s Valuation
AIRT's trailing 12-month EV/Sales of 0.8X is lower than the industry’s average of 1.3X but is higher than its five-year median of 0.6X.
FedEx and United Parcel’s trailing 12-month EV/Sales currently stand at 0.9X and 1.2X, respectively, in the same time frame.
Our Final Take on AIRT
Air T’s strong share-price momentum appears to have a fundamental foundation, supported by progress across its expanding aviation portfolio, emerging growth avenues and an established operating base. Together, these factors have strengthened AIRT's growth narrative and provided multiple avenues for longer-term value creation.
However, sustaining the rally will require consistent execution. Operational constraints at Rex and softness within parts of the commercial aircraft, engines and parts business remain key considerations and could temper the pace of improvement if they persist.
From a valuation standpoint, AIRT still appears reasonably positioned despite its sharp run-up, suggesting that successful execution of its growth initiatives could support additional upside. However, the stock has become more expensive relative to its own historical valuation, indicating that some optimism surrounding its improving business prospects is already reflected in the share price. As a result, further appreciation is likely to depend increasingly on tangible progress at Rex, successful scaling of Crestone and sustained growth across its other businesses.
For existing shareholders, the combination of Rex’s recovery potential, Crestone’s expanded asset-management capabilities, digital growth and stability from the cargo business supports staying invested. Prospective investors may also find AIRT worth considering, although the magnitude of the recent rally warrants some caution. The momentum has scope to continue, but maintaining it will require Air T to translate its expanding aviation platform into sustained operational and financial improvement.
Research Chief Names "Single Best Pick to Double"
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Air T, Inc. (AIRT): Free Stock Analysis Report

Air T Gains Nearly 45% in Three Months: What's Driving the Stock?

Key Points
Stanley Black & Decker's 3.5% yield looks sustainable with a low 39% free cash flow payout.
FedEx offers a 1.5% yield, but it has increased the dividend at a 17% annualized rate over the last five years.
Illinois Tool Works pays a 2.5% yield, with margin expansion supporting prospects for continued dividend hikes.
Buying and holding shares of competitively positioned businesses is one of the best ways to build dividend income for the long haul. These companies generate more cash than they need to run the business, which supports steady (and often rising) dividend payments.
Stanley Black & Decker (NYSE: SWK), FedEx (NYSE: FDX), and Illinois Tool Works (NYSE: ITW) have paid dividends for years and currently offer attractive combinations of yield, safety, and growth. Here's why they can make income investments that pay off.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Stanley Black & Decker
Stanley Black & Decker's competitive advantage starts with its top brands, including DeWalt, Stanley, and Craftsman. Over the last year, it produced $1.3 billion in free cash flow on $15.3 billion in revenue. The company has increased its dividend for more than 50 consecutive years, making it one of the elite Dividend Kings.
The quarterly dividend is currently $0.84 per share, putting the stock's forward dividend yield at 3.5%. Over the last five years, it has grown the dividend at a 3.5% annualized rate. That's not a lot of growth, but the company is also only paying out 39% of its free cash flow to fund the dividend, leaving room to sustain and raise the payout even in a recession.
The recent housing slump has weighed on results, but the business is starting to show progress in a weak environment. Organic revenue rose 3% year over year in the second quarter, led by strength in power tools that helped offset declines in outdoor products.
Just as important, management is working to lift margins -- and that's showing up in the numbers. Adjusted EBITDA (earnings before taxes, interest, depreciation, and amortization) margin hit 11.3% in the quarter, up 320 basis points from a year ago.
If those improvements hold, the company could deliver higher free cash flow once the housing market turns and revenue rises. Demand may remain soft in the near term, but Stanley's long record of dividend increases shows it has navigated multiple cycles while continuing to reward shareholders with rising income.
2. FedEx
FedEx has paid a growing dividend for many years, though it doesn't have as long a streak as Stanley. With a quarterly dividend of $1.22 per share, the stock offers a forward yield of about 1.5%, but it makes up for the lower yield with faster dividend growth.
The company has raised its dividend at a 17% annualized rate over the last five years, and it pays out just 27% of its free cash flow. That gives the company flexibility to keep increasing the dividend over time, even if the economy weakens.
FedEx has faced rising competition from Amazon, but it's still holding its own. Its edge is a global network built for speed, including premium and time-definite delivery that many shippers still rely on. The company's network -- aircraft, hubs, and last-mile infrastructure -- connects much of the world economy.
The company is expanding into higher-value opportunities, including shipments for the healthcare and data center markets. It exited fiscal 2026 (ending in May) with nearly $10 billion in health transportation revenue, while its data center-related revenue nearly doubled year over year.
With guidance calling for roughly 11% revenue growth in calendar 2026, FedEx is experiencing healthy growth. For income investors, the combination of dividend growth, conservative payout, and improving outlook makes it a solid dividend stock to consider buying now.
3. Illinois Tool Works
Illinois Tool Works is another Dividend King worth considering right now. It pays a quarterly dividend of $1.72 per share, or $6.88 annualized, which brings its forward yield to about 2.5%.
It also has the highest payout ratio of the three, returning 62% of free cash flow to shareholders. That's higher, but it fits the profile of a mature, highly profitable industrial business.
Illinois Tool Works focuses on specialized products valued for performance, including auto fasteners, test equipment, and welding systems. That strategy supports pricing power and consistently strong margins.
The company typically reports a high operating margin, which came to 26.7% in Q2. Organic revenue rose 4.5% year over year, led by strength in welding and testing equipment.
Free cash flow jumped 41% from the year-ago quarter. ITW has grown its dividend by about 7% annually over the last five years, and management still sees room to expand margins further -- an important lever for sustaining free cash flow and supporting future dividend increases.
Should you buy stock in Stanley Black & Decker right now?
Before you buy stock in Stanley Black & Decker, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stanley Black & Decker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 2, 2026.
John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends FedEx and Illinois Tool Works. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Dividend-Paying Industrial Stocks to Buy Right Now

Management has done an excellent job preparing for the current macroeconomic headwinds.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Aug. 30, 2026. The video was published on Sept. 1, 2026.
Should you buy stock in FedEx right now?
Before you buy stock in FedEx, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FedEx wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 1, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is FedEx an Excellent Dividend Stock to Buy Right Now?

Explore the exciting world of FedEx (NYSE: FDX) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of July 15, 2026. The video was published on Aug. 28, 2026.
Should you buy stock in FedEx right now?
Before you buy stock in FedEx, consider this:
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FedEx wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 28, 2026.
Anand Chokkavelu has no position in any of the stocks mentioned. Lou Whiteman has no position in any of the stocks mentioned. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

FedEx: A Strong Contender in the Logistics Sector?

Key Points
FedEx spun off 80.1% of its FedEx Freight division in June.
While FedEx has tread water, FedEx Freight experienced a big pullback after an initial rally.
You can make a bull case for either stock.
In June, FedEx (NYSE: FDX) spun off an 80.1% stake in FedEx Freight (NYSE: FDXF), marking the start of the delivery giant's divestiture of its less-than-truckload (LTL) freight segment. Since the spinoff, both stocks have gone in different directions.
While shares in FedEx Freight's former parent have largely remained in a narrow range during the summer, FedEx Freight shares initially experienced a big rally, only to give back those gains, and then some.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors at the time of the spinoff received one share of FedEx Freight for every two shares of FedEx. The question now is whether it's time to exit both transportation stocks, keep one and sell the other, or let them both ride, viewing them as top industrial stocks.
Is FedEx transforming into a lean, mean, parcel-delivering machine?
The spinoff isn't the only way FedEx has pivoted toward its core parcel delivery business. Last month, the company also announced the sale of its FedEx Supply Chain subsidiary. FedEx still owns 19.9% of FedEx Freight. It plans to divest the remaining stake either through exchanges of debt for common stock and/or by distributing them to shareholders.
Yet while FedEx still has skin in the game, management's focus now shifts toward executing its Network 2.0 strategic initiative. For customers, Network 2.0 represents a streamlining of FedEx's parcel pickup and delivery, but for shareholders, the main focus is the estimated $2 billion in structural cost savings.
Yet while long-term forecasts call for double-digit percentage earnings growth in 2027 and 2028, doubts remain. Fuel surcharges helped to mitigate the impact of soaring energy prices, but Amazon's move into the third-party logistics and shipping sector represents a major competitive threat to FedEx. Amazon is using tactics such as lower rates to gain market share.
Only time will tell whether Amazon affects FedEx's earnings growth, but keep in mind how success with Network 2.0 may already be baked into the stock's valuation. Right now, FedEx trades for 16 times forward earnings, a modest premium to rival UPS's forward multiple of about 14. For FedEx's efforts to translate into major gains in the stock, Network 2.0 needs to meet or exceed cost-reduction expectations. The company also needs to maximize customer retention amid the rising competition from Amazon.
Long-term FedEx investors may still want to sit tight. However, for anyone entering or adding to a position, you may want to wait for the next wave of turbulence.
FedEx Freight and its heavy "show me" discount
As an LTL freight-hauling company, FedEx Freight competes with companies like Old Dominion Freight Line. LTLs ship partial truckloads of goods for smaller industrial customers over shorter distances. The big opportunity for FedEx Freight lies in its discounted valuation.
Currently, FedEx Freight trades for about 25 times forward earnings. Competitor Old Dominion, on the other hand, trades for roughly 36 times forward earnings. Closing this valuation gap would mean major price appreciation for the stock.
However, don't expect FedEx Freight's valuation to rise simply because more investors are noticing this valuation discrepancy. It exists because Wall Street wants to see the company knock it out of the park in the coming quarters.
Much of this depends on the newly public company's execution, but external factors could also make or break the story. After softening, demand for LTL services is making a slow recovery. There's also the overhang of FedEx's eventual divestiture of its 19.9% stake. Depending on how quickly FedEx sells these shares, this could continue to weigh on FedEx Freight's performance.
Add in the fact that FedEx Freight also faces a competitive threat from Amazon, the key factor in the stock's initial post-rally pullback, and it's clear why Wall Street's staying in "show me" mode for now. Although a sentiment change would mean tremendous upside from current prices, consider waiting for concrete evidence that the situation is improving.
Should you buy stock in FedEx right now?
Before you buy stock in FedEx, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and FedEx wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!*
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Old Dominion Freight Line, and United Parcel Service. The Motley Fool recommends FedEx and FedEx Freight Holding Company. The Motley Fool has a disclosure policy.

FedEx Just Spun Off Its Freight Division. Which Stock Should You Own?

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about FedEx (FDX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
FedEx currently has an average brokerage recommendation (ABR) of 1.71, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.71 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 62.1% and 6.9% of all recommendations.
Brokerage Recommendation Trends for FDX
The ABR suggests buying FedEx, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is FDX Worth Investing In?
Looking at the earnings estimate revisions for FedEx, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $17.6.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for FedEx. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for FedEx.
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Is It Worth Investing in FedEx (FDX) Based on Wall Street's Bullish Views?

The Home Depot—, the world's largest home improvement retailer, announced that its board of directors declared a quarterly cash dividend of $2.33 per share. The dividend is payable on September 17, 2026, to shareholders of record at the close of business on September 3, 2026. This is the 158th consecutive quarter the company has paid a cash dividend.
Dillard's announced that the Board of Directors declared a cash dividend of $0.30 per share on the Class A and Class B Common Stock of the Company. The dividend is payable November 2, 2026 to shareholders of record as of September 30, 2026.
The board of directors of Medtronic on Thursday, August 20, 2026, approved the company's cash dividend for the second quarter of fiscal year 2027 of $0.72 per ordinary share. This quarterly declaration is consistent with the dividend increase announcement made by the company in June 2026. Medtronic is a constituent of the S&P 500 Dividend Aristocrats index, having increased its annual dividend payment for the past 49 consecutive years. The dividend is payable on October 16, 2026, to shareholders of record at the close of business on September 25, 2026.
Sysco announced that the Board of Directors declared a quarterly cash dividend of $0.55 per share, payable on October 23, 2026, to common stockholders of record at the close of business on October 2, 2026.
The Board of Directors of FedEx today declared a quarterly cash dividend of $1.22 per share on FedEx Corp. common stock, in line with the company's continued focus on delivering stockholder value. The dividend is payable October 1, 2026, to stockholders of record at the close of business on September 14, 2026.
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Daily Dividend Report: HD,DDS,MDT,SYY,FDX

Key Points
Amazon has been UPS’s largest customer for years.
But UPS doesn’t want to rely on those high-volume, low-margin shipments anymore.
UPS (NYSE: UPS), one of the world's largest shipping couriers, significantly reduced its dependence on Amazon (NASDAQ: AMZN) over the past two years. In early 2025, UPS announced it would reduce its Amazon-related shipping volume by more than 50% through 2026. By mid-2026, UPS had phased out its standard last-mile delivery services for Amazon across its major markets, reducing its shipment volume by millions of pieces per day.
Amazon had been UPS's largest customer, so it might initially seem like an odd move to eliminate those services. However, those last-mile shipments clogged its sorting facilities and generated lower profits than its longer-range deliveries. Therefore, UPS was willing to sacrifice its near-term revenue to stabilize its long-term margins. Let's see if that was the right call.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
How much did UPS depend on Amazon?
In 2024 and 2025, UPS generated about 11% of its revenue from Amazon. That percentage dipped below 9% in the first half of 2026 and should shrink even further in the second half.
That percentage won't drop to zero, since UPS will still process Amazon's returns at its UPS Stores, handle its marketplace seller logistics, and deliver its long-distance freight. It will also still fulfill Amazon's last-mile orders in certain rural areas and during peak delivery seasons. Therefore, it's not completely cutting ties with Amazon, as FedEx (NYSE: FDX) did in 2019.
What will the impact be on its business?
UPS is focused on securing higher-margin orders from small- to medium-sized businesses and healthcare customers to offset its loss of Amazon's orders. It's also trimming its workforce, closing some facilities, and automating more tasks to streamline its business.
For 2026, UPS expects its revenue to rise 3% to $91.2 billion as its adjusted EPS grows 1% to $7.22. Those growth rates might seem sluggish, but they would mark the first time its revenue and adjusted EPS have grown in tandem since 2022.
More importantly, achieving that acceleration would also prove that UPS doesn't need Amazon's lower-margin orders to keep growing. It also counters the bearish notion that macro, competitive, and labor-related headwinds would limit its long-term growth.
Is UPS a good investment today?
At $100, UPS still looks like a bargain at 14 times this year's earnings, and it pays an attractive forward dividend yield of 6.4%. It's raised that payout for 16 consecutive years. UPS isn't an exciting stock, but its low valuation, high yield, and steady turnaround all make it a safe income play in this tumultuous market.
Should you buy stock in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!*
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Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Indicator	Jun 26	Jul 26	Aug 26	Sep 26	Oct 26	TTM	Median
P/E	—	25.81	27.49	23.94	25.79	25.79	24.96
Price/Sales	—	—	—	—	0.80	0.80	1.40
P/B	—	2.47	2.63	2.29	2.46	2.46	2.35
P/FCF	16.67	12.75	—	11.82	12.73	12.73	18.03

FedEx Corporation

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue

Indicator	Jun 26	Jul 26	Aug 26	Sep 26	Oct 26	TTM	Median
ROE	—	—	—	—	—	13.23	14.69
ROA	—	—	—	—	—	4.17	6.05
ROI	—	—	—	—	—	7.61	8.73
Net Worth	—	73.47	—	—	73.40	73.40	1.16
Quick Ratio	—	—	—	—	—	1.44	1.16
Current Ratio	—	—	—	—	—	1.47	1.59

Indicator	Jun 26	Jul 26	Aug 26	Sep 26	Oct 26	TTM	Median
Net Profit Margin	—	—	—	—	—	4.07	7.68
Operating Margin	—	—	—	—	—	5.61	10.44
Gross Margin	—	—	—	—	—	71.20	32.69
Return on tangible equity	—	—	—	—	—	17.28	24.78

Indicator	Jun 26	Jul 26	Aug 26	Sep 26	Oct 26	TTM	Median
EPS	6.31	—	—	—	—	6.31	0.76
EPS Forecast	5.91	—	—	—	—	5.91	0.67
Revenue	—	—	—	—	—	24.00B	187.00M
Gross Profit	—	—	—	—	—	17.06B	—
EBITDA	—	—	—	—	—	4.62B	—