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 Corporation

Key Points
UPS is struggling due to tariffs and its decision to reduce its reliance on Amazon.
The company has a plan to turn things around.
It's leaning heavily on its strong balance sheet to bridge the gap between its free cash flow and dividend outlay.
Shares of UPS (NYSE: UPS) have been on a downward spiral, losing nearly a third of their value in the last year and over 60% from their early 2022 peak. The sharp decline has driven up its dividend yield to 7.5%, far above the S&P 500's 1.2% and rival FedEx's 2.4%.
Here's a look at whether UPS's alluring payout is a dividend yield trap or an unbelievable income opportunity.
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A look at what's driving the downdraft in UPS' stock price
UPS has been battling a couple of notable headwinds over the past few years. It's dealing with a challenging global economic environment due to ever-evolving trade policies. Tariffs are increasing international shipping costs, impacting the company's volumes. Additionally, the company is scaling back its relationship with its top customer, Amazon, to focus on more profitable business segments. The e-commerce giant provided 11% of the company's revenue in 2024 and around a quarter of its volumes. UPS wants to reduce its Amazon-related shipping volumes by more than 50% by the second half of next year.
These headwinds have weakened UPS's recent financial performance. Second-quarter revenue fell by nearly 3% to $21.2 billion, while adjusted earnings dropped 13% to $1.55 per share. This hit its cash flow. UPS generated $2.7 billion in cash flow from operations and $742 million in free cash flow in the first half of this year, both notably lower than last year's figures ($5.3 billion in operating cash flows and nearly $3.4 billion in free cash flow).
The drop in free cash flow threatens the sustainability of the dividend. UPS has paid $2.7 billion in dividends in the first six months of this year, $2 billion more than its free cash flow over the period. The company also repurchased $1 billion of stock earlier this year. It made up for the shortfall by taking on additional debt. Long-term debt and finance leases rose from $19.5 billion at last year's end to $23.8 billion. While the company has a more than $6 billion cash balance and strong A2/A bond ratings, funding the dividend with debt is unsustainable over the long term.
The turnaround plan
UPS has launched a two-pronged strategy to reconfigure its business to better align with its future Amazon volumes while growing higher-margin operations, such as healthcare logistics. As part of that plan, UPS aims to deliver $3.5 billion of annual cost savings by the end of this year. It has closed several buildings, reduced its headcount, and launched other cost-saving initiatives. The company expects to achieve the bulk of those cost savings during the second half of this year, positioning it to produce stronger earnings and cash flow in 2026.
Additionally, the company is investing capital to grow its higher-margin operations, notably healthcare logistics. UPS has accelerated the expansion of this platform through acquisitions. Last year, it acquired Frigo-Trans and BPL to bolster its cold-chain logistics capabilities in Europe. Meanwhile, it agreed to buy Andlauer Healthcare Group earlier this year for $1.6 billion to bolster its North American healthcare logistics platform.
These moves to reduce costs and grow its higher-margin businesses position UPS to become a more profitable company in the future. That would seemingly enhance its ability to continue paying the dividend.
What does all this mean for the dividend?
The key concern is whether UPS can maintain its current dividend during its ongoing transformation. On the one hand, the company has regularly reaffirmed its commitment to the dividend. Its most recent quarterly dividend announcement press release, UPS stated: "Commitment to the dividend is one of UPS's core principles and a hallmark of the company's financial strength. UPS has either maintained or increased its dividend each year since going public in 1999." It further reinforced its commitment to the payout earlier this year by increasing the quarterly payment by $0.01 per share to $1.64 per share.
However, relying on the balance sheet to fund dividends is not a viable long-term solution. If UPS's turnaround plan drags on or is less effective than expected, management may need to reduce the dividend to align the payout with available free cash flow and protect the company's financial health. This makes the current dividend vulnerable if the company doesn't show financial improvements soon.
The dividend might be too good to be true
UPS continues to prioritize its dividend while navigating operational challenges. While its strong balance sheet allows it to do so, the wide gap between free cash flow and its dividend outlay poses a considerable risk. If its turnaround efforts fail to deliver, a dividend cut becomes increasingly likely. Given this risk, income-focused investors should view the current yield with caution, as the payout may not be sustainable throughout the company's turnaround. The stock is best suited for those comfortable with more risk, given the uncertainty surrounding the dividend.
Should you invest $1,000 in United Parcel Service right now?
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Matt DiLallo has positions in Amazon, FedEx, and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is This 7.5%-Yielding Dividend Too Good to Be True?

In the latest close session, FedEx (FDX) was up +1.25% at $241.15. The stock outpaced the S&P 500's daily gain of 0.79%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq gained 1.15%.
Heading into today, shares of the package delivery company had gained 0.74% over the past month, outpacing the Transportation sector's loss of 1.44% and lagging the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of FedEx in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.99, indicating a 1.48% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.89 billion, up 4.18% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.93 per share and a revenue of $91.81 billion, indicating changes of -1.43% and +4.42%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. At present, FedEx boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, FedEx is currently exchanging hands at a Forward P/E ratio of 13.28. For comparison, its industry has an average Forward P/E of 13.47, which means FedEx is trading at a discount to the group.
We can additionally observe that FDX currently boasts a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.61.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 7% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FedEx (FDX) Outperforms Broader Market: What You Need to Know

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in FedEx Corp (Symbol: FDX), where a total of 7,542 contracts have traded so far, representing approximately 754,200 underlying shares. That amounts to about 50% of FDX's average daily trading volume over the past month of 1.5 million shares. Especially high volume was seen for the $245 strike call option expiring October 24, 2025, with 2,400 contracts trading so far today, representing approximately 240,000 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $245 strike highlighted in orange:
Abercrombie & Fitch Co (Symbol: ANF) options are showing a volume of 10,139 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 50% of ANF's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $70 strike put option expiring November 21, 2025, with 855 contracts trading so far today, representing approximately 85,500 underlying shares of ANF. Below is a chart showing ANF's trailing twelve month trading history, with the $70 strike highlighted in orange:
And Salesforce Inc (Symbol: CRM) saw options trading volume of 48,449 contracts, representing approximately 4.8 million underlying shares or approximately 49.9% of CRM's average daily trading volume over the past month, of 9.7 million shares. Particularly high volume was seen for the $260 strike call option expiring October 24, 2025, with 2,801 contracts trading so far today, representing approximately 280,100 underlying shares of CRM. Below is a chart showing CRM's trailing twelve month trading history, with the $260 strike highlighted in orange:
For the various different available expirations for FDX options, ANF options, or CRM options, visit StockOptionsChannel.com.
Also see:
BRD YTD Return
Funds Holding LHC
MPC MACD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: FDX, ANF, CRM

United Parcel Service UPS is scheduled to report its third-quarter 2025 results on Oct. 28, 2025.
The Zacks Consensus Estimate for the September-quarter earnings is pegged at $1.31 per share, implying a 25.6% decrease from the year-ago quarter’s reported number. The estimate has been revised downward by 5 cents per share over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for revenues is pegged at $20.84 billion, indicating a decline of 6.3% from the year-ago quarter’s actuals.
UPS has an impressive earnings surprise history, as reflected in the chart below.
Image Source: Zacks Investment Research
Given this backdrop, let us examine the factors likely to influence UPS’ third-quarter results.
Shipping volumes at UPS are likely to have been hurt by geopolitical uncertainties and high inflation. Uncertainty over tariffs, supply-chain instability and other broader macroeconomic headwinds are likely to hurt results. We believe that more than the financial numbers, it is the guidance that investors will more closely watch.
Labor costs are likely to have been high, hurting United Parcel Service’s bottom-line performance in the September quarter. Faced with these headwinds, the company has been focusing on cutting costs. As part of this exercise, UPS is offering buyouts to delivery drivers for the first time in its 117-year history. UPS’ full-time drivers are eligible for this offer. We expect an update on the same on the conference call.
Apart from the tariff-induced economic uncertainties, UPS’ decision to reduce business with its largest customer, Amazon AMZN, contributed to the decision to trim the workforce. UPS’ management has reached an agreement in principle with Amazon to lower the latter’s volume by more than 50% by June 2026. According to Carol Tome, UPS’ chief executive officer, Amazon was not its most profitable customer.
The De Minimis exemption had expired on Aug. 29. The trade exemption allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. In July, President Trump signed the executive order to eliminate the exemption. Per a recent NBC News report, the accumulation of packages in UPS warehouses has compelled it to discard some shipments due to severe customs bottlenecks.
UPS has been facing customer backlash with allegations that it has been discarding certain international shipments before they reach their intended destinations. An update on that front is also expected on the third-quarter conference call.
Low fuel costs are expected to have aided UPS’ bottom-line performance in the September-end quarter. We expect expenses on fuel to decrease 7.6% from the third-quarter 2024 actuals. Tariff concerns, weakening consumer confidence and production increase by OPEC+ have all contributed to this downward pressure on crude oil.
Q3 Earnings Whispers for UPS
Our proven model does not conclusively predict an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
The company's Earnings ESP is -1.04%. This is because the Most Accurate Estimate is currently pegged at $1.29 per share, 2 cents below the Zacks Consensus Estimate.
UPS currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Unimpressive Price Performance of UPS Stock
Shares of UPS have plunged in excess of 30% so far this year compared with the Zacks Transportation—Air Freight and Cargo industry’s 22.4% decline. Rival FedEx's FDX price performance is better than that of UPS.
YTD Price Comparison
Image Source: Zacks Investment Research
Valuation Picture
On the basis of the forward 12-month Price/Sales (P/S), UPS’ shares are trading at a discount compared with the industry average. Rival FedEx is cheaper. FedEx currently has a Value Score of A, like UPS.
UPS’ P/S F12M Vs. Industry & FDX
Image Source: Zacks Investment Research
Investment Thesis for UPS Stock
Due to the decline in shipping demand, volumes at UPS have suffered. A slowdown in online sales in the United States, apart from a softness in global manufacturing activity, has been hurting the demand scenario.
Moreover, the recent failure of the Estafeta deal represents a setback to UPS’ expansion efforts. UPS cited the inability to satisfy all closing conditions as the reason for the cancellation. The deal was announced in 2024, as a part of UPS’ “Better and Bolder” strategy to become the world's premium international small package and logistics provider.
Concerns over the sustainability of UPS’ dividends in this era of demand weakness represent a further challenge for this parcel delivery company. However, UPS’ expansion efforts look good.
What Should Investors Do With UPS Stock?
It is worth noting that the company has the brand and the network to continue generating steady cash flows in the long run. This makes UPS a compelling long-term player in the transportation space. However, the near-term headwinds, including the tariff-induced uncertainties, are hard to ignore. The combination of its weak current performance and an uncertain future casts a shadow over UPS’ prospects.
Though the company has a solid track record of beating earnings estimates, it will be prudent for investors to stay away from investing in the stock for now and wait for the upcoming quarterly results to get more clarity on near-term prospects.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy, Hold or Sell UPS Stock: Key Tips Ahead of Q3 Earnings

Key Points
Bought 97,795 shares of IBIT; estimated transaction value of $6.36 million
Trade represented 1.9% of 13F reportable assets under management
Position after trade: 125,552 shares valued at $8.16 million
IBIT now accounts for 2.5% of fund AUM
Image source: Getty Images
On October 16, 2025, Silverleafe Capital Partners, LLC disclosed buying 97,795 shares of iShares Bitcoin Trust ETF (NASDAQ:IBIT), an estimated $6.36 million trade based on average quarterly pricing.
Bought 97,795 shares of IBIT; estimated transaction value of $6.36 million
Trade represented 1.9% of 13F reportable assets under management
Position after trade: 125,552 shares valued at $8.16 million
IBIT now accounts for 2.5% of fund AUM
What happened
According to a filing with the U.S. Securities and Exchange Commission dated October 16, 2025, Silverleafe Capital Partners, LLC acquired an additional 97,795 shares of iShares Bitcoin Trust ETF (NASDAQ:IBIT) during the quarter, bringing its total position to 125,552 shares. The estimated value of the purchase is approximately $6.36 million.
What else to know
Silverleafe Capital Partners, LLC increased its IBIT stake, which now represents 2.5% of reportable assets under management
Top holdings after the filing:
QQQ: $32.32 million (10.0% of AUM)
IVV: $30,590,298 (9.4% of AUM)
NASDAQ:WEST: $22.97 million (7.1% of AUM)
BRK-A: $21.12 million (6.5% of AUM)
FDX: $16,374,610 (5.1% of AUM)
As of October 15, 2025, shares were priced at $63.17, up 65.5% over the year to October 15, 2025, outperforming the S&P 500 by 54.3 percentage points over the year to October 15, 2025
Company overview
AUM
87.63 B
Price (as of market close October 15, 2025)
$63.17
One-year price change
65.5%
Company snapshot
iShares Bitcoin Trust ETF enables institutional and retail investors to gain exposure tobitcoin priceperformance without direct cryptocurrency ownership, using a regulated ETF structure.
The fund's investment strategy seeks to provide investors exposure to bitcoin's price performance and offers a regulated and accessible vehicle for digital asset allocation.
The fund's expense ratio is not currently disclosed.
Foolish take
iShares Bitcoin Trust (IBIT) has quickly become the go-to vehicle for investors who want exposure to Bitcoin's upside without the complexity of owning the cryptocurrency directly. Built by BlackRock, IBIT brings institutional-grade infrastructure and transparent to a market once known for uncertainty. The combination of credibility and simplicity is reshaping how every day investors approach digital assets.
Over the past year, IBIT has tracked Bitcoin's 65% surge while offering the ease and liquidity of a traditional ETF. Its structure allows investors allows investors to participate in Bitcoin's momentum through brokerage accounts without the need for wallets, private keys, and middlemen. Its accessibility is what is pulling crypto from the fringes into mainstream portfolios.
The growing comfort among institutions like Silverleafe also suggests Bitcoin is viewed less as speculation and more as a long term store of value that complements traditional inflation hedges such as gold.
The appeal of a spot Bitcoin ETF lies in its transparency and clarity. Investors know exactly what they own and how it trades. For long term investors, IBIT's ascent is another signal that digital assets are quietly shifting from the edges of finance toward its core.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding assets like stocks, bonds, or commodities.
Assets Under Management (AUM): The total market value of assets that an investment firm or fund manages on behalf of clients.
13F Reportable Assets: Securities that investment managers must disclose quarterly to the SEC if managing over $100 million in qualifying assets.
Expense Ratio: The annual fee, expressed as a percentage, that funds charge investors to cover operating expenses.
Digital Asset Allocation: The process of investing in digital assets, such as cryptocurrencies, within a portfolio.
Institutional Investor: An organization, such as a fund or insurance company, that invests large sums of money in securities and assets.
Retail Investor: An individual investor who buys and sells securities for personal accounts, not for organizations.
Outperforming: Achieving a higher return than a benchmark or comparison index over a specific period.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Silverleafe Expands Bitcoin ETF Bet as Institutions Warm to Digital Assets

Key Points
Studies show that dividend-growing stocks tend to outperform the broader market over extended periods while exhibiting lower volatility.
Companies that consistently increase their dividend payments tend to have stable business models and strong cash management.
Look for stocks of companies that have steady cash flows and a long history of rewarding shareholders.
Investing in the stock market is an excellent way to build long-term wealth. Key to this is patience, discipline, and owning stocks in quality businesses.
Businesses that consistently reward shareholders with steady dividend payments can be an excellent choice for those seeking a blend of income and growth. The ability to pay and consistently raise dividends over time is a sign of financial strength and stability, not just short-term success.
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According to a study by Hartford Funds in conjunction with Ned Davis Research, over the past five decades, dividend growers tend to outperform non-dividend growers while experiencing less volatility along the way. If you're interested in dividend stocks, here are seven solid investments you can buy and hold for the next 20 years and beyond.
1. Coca-Cola
Coca-Cola's (NYSE: KO) appeal stems from its unmatched global brand portfolio, vast distribution network, and high-margin beverage concentrate model. Operating in over 200 countries, Coca-Cola collects steady cash flows while bottlers shoulder most capital costs. Its consistent pricing power and scale buffer against inflation and currency swings.
Coca-Cola has raised its dividend payment every year for 63 consecutive years, with annual increases reflecting steady free-cash-flow generation and disciplined capital management. Its strategic expansion into low-sugar drinks, coffees, and energy beverages broadens growth beyond soda while maintaining brand dominance.
2. Procter & Gamble
Procter & Gamble (NYSE: PG) may be the gold standard of dividend dependability. The company has made more than 135 years of uninterrupted payments and has grown its dividend payment for 69 consecutive years -- one of the longest streaks among today's Dividend Kings.
Procter & Gamble's strength comes from its portfolio of trusted consumer brands, which includes Tide, Pampers, Gillette, and Crest. These strong brands deliver consistent, recession-resistant cash flow. With its scale and global reach, brand pricing power enables steady margins even amid inflation. The company converts over 90% of earnings to free cash flow, funding dividends and buybacks without straining its balance sheet.
3. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) is a master limited partnership operating a highly stable fee-based energy infrastructure network in North America. It operates over 50,000 miles of pipelines and over 300 million barrels of liquid storage, along with processing assets that span crude oil, natural gas, and natural gas liquids (NGLs).
As a midstream operator, Enterprise is more insulated from commodity-price swings. That's because most of its revenue comes from fee-based contracts tied to the volume of oil, gas, and natural gas liquids moved through its pipelines, not their market price. Approximately 90% of its contracts include an escalation provision to mitigate the impact of inflation on cash flow and distributions.
Enterprise Products Partners has grown its distribution for 26 consecutive years. Given its stable, fee-based model and growth in domestic oil and gas production, along with its 7% yield, Enterprise is a solid dividend stock for investors.
4. ExxonMobil
ExxonMobil (NYSE: XOM) operates as an integrated oil and gas company. In other words, it engages in activities across the entire value chain, including exploring and producing crude oil and natural gas (upstream operations) and refining crude oil into fuel, lubricants, and other petroleum-based products (downstream operations).
Operating across the value chain enables ExxonMobil to weather volatile oil prices and deliver for investors. This diverse business model is a big reason why the company has grown its dividend payout to investors for 42 consecutive years.
Exxon's expansion in liquefied natural gas (LNG), Guyana oil production, and low-carbon technologies such as carbon capture and hydrogen add future cash-flow resiliency.
5. Realty Income
Realty Income (NYSE: O), also known as "The Monthly Dividend Company," is a diversified real estate investment trust (REIT) with a diversified portfolio of more than 15,000 properties leased to blue chip tenants like Walgreens, Dollar General, and FedEx on long-term, triple-net leases (NNN).
By utilizing triple net leases, it shifts most expenses, such as taxes, insurance, and maintenance, to tenants to ensure a more predictable cash flow. This has enabled the company to raise its dividend payment every year since 1994.
With consistent occupancy rates near 99% and disciplined capital management, Realty Income offers investors a combination of dependable monthly income and steady long-term growth.
6. Aflac
Aflac (NYSE: AFL) offers life insurance and supplemental insurance, providing its customers with coverage that traditional health insurers typically do not cover. Its strength as a steady dividend payer comes from its conservative underwriting and a strong market position in both the U.S. and Japan.
The company has a strong brand and a long history of profitability, fueling its dividend, which it has grown consistently for over 42 years. The company's focus on high-return insurance lines and disciplined cost control provides it with resilience through economic cycles.
7. Chubb
Chubb (NYSE: CB) provides an array of insurance policies, including commercial and consumer property and casualty (P&C), personal accident, supplemental health, life insurance, and reinsurance. The company is a major player in the industry, with operations spanning 54 countries.
Chubb's strength lies in underwriting discipline. With policies spanning a wide array of risk types, it's vital that Chubb accurately assesses its risks and prices its policies accordingly. Its combined ratio, a key measure of profitability in the insurance industry, consistently beats the industry average, showing strong risk selection and cost control.
With more than three decades of uninterrupted dividend increases and a payout ratio of 33%, Chubb's dividend is both sustainable and positioned for continued growth.
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Courtney Carlsen has positions in ExxonMobil. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners and FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

7 Dividend Stocks to Hold for the Next 20 Years

Key Points
Realty Income has increased its dividend 132 times and paid a monthly payment for more than 50 years.
The company outperforms the real estate sector and is a reliable income stream.
This is an uncertain world and there are very few sure things. As Ben Franklin once observed, "nothing is certain except death and taxes." But I think investors can almost add a third thing to that item -- the trusty real estate dividend stock Realty Income (NYSE: O) and its ability to keep paying investors, no matter what the market looks like.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Realty Income is perhaps the most reliable dividend stock you can find. And it's a well-deserved mantle. Realty Income just declared its 664th consecutive monthly dividend since the company was founded in 1969 -- a streak that goes back more than 55 years. The company has also increased its dividend 132 times in that period, giving Realty Income shareholders a rare blend of growth and income.
This California-based real estate investment trust (REIT), is a no-brainer dividend stock to buy, and is a perfect investment for anyone looking to build their dividend portfolio over a long period of time.
About Realty Income
Realty Income is based in California, but it has a massive presence. The company has 15,600 commercial properties, located in every U.S. state and much of Europe. Realty Income's customers represent 91 separate industries and include more than 1,600 clients.
And most importantly, the company's portfolio has an occupancy rate of 98.5% -- meaning that Realty Income is assured of a consistent revenue stream. That's how it can afford to pay a consistent, reliable monthly dividend. Industries the company leases property to include grocery stores, convenience stores, home improvement stores, dollar stores, restaurants, drug stores, health and fitness centers, and more.
The company also diversifies its portfolio, which means a catastrophic failure in an industry or by a single business won't hurt its operations. Convenience store chain 7-Eleven is the biggest tenant for Realty Income, and even then it's only a 3.4% weighting.
Top 10 Clients
Portfolio Weighting
7-Eleven
3.4%
Dollar General
3.2%
Walgreens
3.2%
Dollar Tree
2.9%
Life Time Fitness
2.1%
EG Group Limited
2.1%
Wynn Resorts
2%
B&Q
2%
FedEx
1.8%
Asda
1.6%
Realty Income stock performance
Unsurprisingly, real estate stocks haven't done well for much of the year. The S&P 500 real estate sector as a whole is up only 4%, thanks to the weak housing market and high interest rates that make borrowing more expensive. But Realty Income has been able to shake off those pressures. The stock is up 11% on the year, and when you calculate the total return of reinvesting dividend payments, the return is more than 15%.
The company recorded $1.41 billion in revenue in the second quarter, up from $1.34 billion a year ago. Income was down, however, thanks to borrowing costs -- the company recorded $196.9 million and $0.22 per share versus $256.8 million and $0.29 per share a year ago.
Realty Income lowered its full-year guidance, with net income now expected to be $1.29 to $1.33 per share, from previous guidance of $1.40 to $1.46 per share.
The case for Realty Income
There's nothing flashy about this stock. But that's fine -- not everything in your portfolio needs to be a shiny new toy. Realty Income's strength comes with its consistency and long-term growth window.
An investment 10 years ago in Realty Income would give you $20,270 today, assuming that you reinvested all those dividends back into your stock. Had you pocketed the money, you'd still have $12,880 -- which all goes to show the power of compound interest.
And remember, because Realty Income is a REIT, it's required by law to disburse 90% of its profits back to shareholders (the current yield is 5.4%). Because it's a monthly payout instead of a quarterly check, investors get the proceeds quicker, and those funds can work for them rather than working for Realty Income.
If you are an income investor, you really can't beat Realty Income for its business plan, diversification, and combination of growth and income. If you are a patient investor with a long-term view, Realty Income is a perfect dividend stock.
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Patrick Sanders 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why This California-Based Company Could Reward Patient Investors

FedEx Corporation FDX and Westinghouse Air Brake Technologies Corporation WAB, operating as Wabtec Corporation, are two prominent names in the Zacks Transportation sector. Both companies have announced dividend hikes this year despite the prevalent economic uncertainties, reflecting their shareholder-friendly approach.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario.
In February, Wabtec’s board of directors approved a dividend hike of 25%, thereby raising its quarterly cash dividend to 25 cents per share ($1.00 annualized) from 20 cents (80 cents annualized). In June, FDX’s board of directors approved a dividend hike, thereby raising its quarterly cash dividend to $1.45 per share ($5.8 annualized) from $1.38 ($5.52 annualized).
Wabtec Dividend Yield (TTM)
FedEx Corporation Dividend Yield (TTM)
The dividend-paying abilities of both transportation stocks are pretty impressive. Now, let’s delve deeper to compare other relevant metrics to determine which stock, WAB or FDX, is a better investment now.
Price Performance: How Do They Compare
WAB has navigated the recent tariff-induced stock market volatility well, registering a 2.4% year-to-date gain, while FDX stock has declined in double digits.
YTD Price Comparison
Image Source: Zacks Investment Research
FDX’s lackluster price performance is mainly due to the revenue weakness as geopolitical uncertainty and high inflation continue to hurt consumer sentiment and growth expectations. The weak demand scenario has led to a decline in the volume of packages shipped.
On the other hand, WAB’s recent strength is driven by its focus on new technologies to improve safety and reliability, in addition to its restructuring actions and cost-cutting initiatives. WAB’s focus on new technologies enhances the safety, cost and reliability of railroads, supporting the modernization of global rail fleets. Of late, WAB has introduced a number of significant new products, including PTC equipment that includes onboard digital data and global positioning communication protocols.
Wabtec and Intermodal Telematics B.V., a Dutch leader in rail telematics technology, recently expanded their partnership through an agreement granting Wabtec exclusive distribution rights for IMT’s telematics solutions across the European market. This move positions Wabtec as the sole distributor of IMT’s railcar telematics systems in key European freight markets.
Other major expansion-oriented deals inked by WAB include a multiyear Tier 4 locomotive order in North America valued at over $600 million, a multi-year service contract with a customer in Brazil worth over $240 million, a long-term parts agreement with a customer in Asia, and a multi-year order for new locomotives in Africa. The recent new order wins in Kazakhstan are expected to boost revenues further. The improving global rail supply market in the post-COVID scenario is another positive for the company. The Association of the European Rail Industry, UNIFE, expects theglobal marketfor railway systems and services to grow at an annual average of around 3% until 2027-29.
How Do Zacks Estimates Compare for WAB & FDX?
The Zacks Consensus Estimate for WAB’s 2025 and 2026 sales implies a year-over-year increase of 6.7% and 5.8%, respectively. The consensus mark for WAB’s 2025 EPS highlights a 17.5% year-over-year drop. The consensus mark for 2026 EPS suggests an 11.5% year-over-year increase. Moreover, EPS estimates for 2025 and 2026 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FDX’s current year sales implies a 4.4% year-over-year increase and the same for the next fiscal year implies a 3.9% year-over-year increase. The consensus mark for FDX’s current fiscal year EPS highlights a 1.4% year-over-year decrease. The same for the next year implies a 13.8% year-over-year increase. The annual EPS estimates for the current and next fiscal years have been trending southward over the past 60 days.
Image Source: Zacks Investment Research
WAB Appears to Be Pricier Than FDX
WAB is trading at a forward sales multiple of 2.85, above its median of 2.07 over the last five years. WAB has a Value Score of D. Meanwhile, FDX has a Value Score of A, with its forward sales multiple at 0.58, below its 5-year median of 0.69.
Image Source: Zacks Investment Research
Conclusion
WAB’s expensive valuation (compared to its 5-year median) seems to suggest that investors are to pay a premium for this key player in the transportation sector. Agreed that both stocks focus on paying dividends, WAB’s better price performance and northward earnings estimate revisions highlight the fact that its focus on new technologies to improve safety and reliability, apart from its cost-cutting actions, is working well.
Given its better prospects, WAB seems to have an edge over FDX now.
While WAB carries a Zacks Rank #3 (Hold), FDX is currently #4 Ranked (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FDX vs. WAB: Which Dividend-Paying Transportation Stock Has an Edge?

United Parcel Service UPS shares have exhibited a consistent downward trend in recent months and currently trade near the 52-week low. At the closing price of $83.18 as of Oct. 13, the stock trades just 1.4% above the 52-week low of $82.
Year to date, UPS shares have plunged 34%, underperforming the Zacks Transportation—Air Freight and Cargo industry’s decline of 27.5%. Moreover, UPS has been left behind by rival FedEx FDX and fellow industry player GXO Logistics GXO. While shares of FedEx have lost 18.4%, those of GXO Logistics have gained 20.7% year to date.
YTD Price Comparison
Image Source: Zacks Investment Research
In view of this disappointing price performance, let's delve deep to find out how investors should approach UPS stock in the current scenario.
Factors Hurting UPS Stock
End of De Minimis Exemption Hits UPS Hard: The De Minimis exemption had expired on Aug. 29. The trade exemption had allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. In July, President Trump signed the executive order to eliminate the exemption. Per a recent NBC News report, the accumulation of packages in UPS warehouses has compelled the company to discard some shipments due to severe customs bottlenecks. UPS is facing customer backlash with allegations that it has been discarding certain international shipments before they reach their intended destinations.
Dividend Sustainability in Question:In February, UPS management announced a 0.6% hike in its quarterly dividend payout to $1.64 per share (annualized $6.56 per share). No doubt this represents UPS’ shareholder-friendly approach, but questions about the sustainability of its dividend arise. United Parcel Service’s elevated dividend payout ratio (the percentage of net income paid out as dividends) of 87% highlights the concern associated with its ability to maintain dividend payouts over the long term.
We remind investors that in the early 2020s, when UPS’ business was flourishing, driven by exponential e-commerce growth during the peak pandemic period, the company made huge dividend payments. Free cash flow has been on a decline since touching a high of $9 billion in 2022.
UPS' elevated dividend payout is hurting its operational flexibility, with free cash flow not even covering the dividend paid in the first half of 2025. During the period, the company only generated $742 million in free cash flow in the first half, yet paid $2.7 billion in dividends.
Demand Slowdown: A Grave Concern: Due to the decline in shipping demand, volumes are being hurt. Lackluster volumes have been hurting UPS’ results. The slowdown in online sales in the United States, apart from the softness of global manufacturing activity, has been hurting the demand scenario. Due to the weakness, average daily volumes (consolidated) have been weak. At UPS, average daily volumes on a consolidated basis have declined 3.8% year over year in the first half of 2025. The tariff-induced uncertainty caused UPS not to give any revenue or operating profit guidance for 2025 while releasing second-quarter 2025 results. In the June quarter, revenues decreased 2.7% year over year.
Southward Earnings Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for UPS’ third-quarter and fourth-quarter 2025 earnings and full-year 2025 and 2026 earnings have moved south.
Image Source: Zacks Investment Research
UPS’ Valuation: A Saving Grace
UPS is currently considered relatively undervalued, trading at a forward 12-month price to sales (P/S) of 0.8X. This figure is lower than its industry average but a tad higher than FedEx’s and GXO Logistics’. UPS, as well as FedEx, currently has a Value Score of A. GXO Logistics has a value score of B.
UPS' P/S Vs. Industry, GXO & FDX
Image Source: Zacks Investment Research
Not an Opportune Time to Bet on UPS Stock
No doubt that UPS’ valuation is attractive. However, headwinds led by the revenue woes are hard to ignore. Moreover, despite its impressive dividend yield, doubts regarding UPS’ dividend sustainability arise.
The current chaotic situation faced by customers due to the backlog of packages at UPS also does not bode well. In view of all these headwinds, UPS currently carries a Zacks Rank #4 (Sell) and looks like a stock to avoid rather than chase.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UPS Stock Trades Near 52-Week Low: Time to Buy, Sell or Hold?

FedEx FDX is realigning its costs under a company-wide initiative called DRIVE, in response to post-COVID business adjustments. The DRIVE program resulted in $1.8 billion in permanent savings in fiscal 2024. The program resulted in an additional $2.2 billion in cost savings in fiscal 2025.
Geopolitical uncertainty and high inflation continue to hurt consumer sentiment and growth expectations. The weak demand scenario due to the economic slowdown has led to a decline in the volume of packages shipped. Faced with these headwinds, the company is focusing on cutting costs. In fiscal 2026, FDX anticipates $1 billion in transformation-related savings from DRIVE and Network 2.0.
These cost reduction initiatives include reducing flight frequencies, parking aircraft and cutting staff. FedEx Supply Chain, the contract logistics arm of the company, has announced the layoff of 611 employees at two neighboring distribution centers in Memphis, TN, according to a FreightWaves report.
Last month, FedEx reported better-than-expected earnings per share and revenues for the first quarter of fiscal 2026 (ended Aug. 31, 2025). The results were mainly aided by the company’s cost-cutting initiatives. FDX expects a sequential improvement in adjusted EPS in the fiscal second quarter. The Zacks Consensus Estimate for the fiscal second quarter is currently pegged at $3.99 per share compared with $3.83 reported on an adjusted basis in the fiscal first quarter.
FDX’s rival, United Parcel Service UPS, is also cutting costs to combat the weak demand scenario. As part of this exercise, United Parcel Service is offering buyouts to delivery drivers for the first time in its 117-year history. United Parcel Service’s full-time drivers are eligible for this offer. The company has also decided to trim its workforce as part of its cost-cutting exercise.
Apart from the tariff-induced economic uncertainties, UPS’ decision to reduce business with its largest customer, Amazon AMZN, contributed to the decision to trim the workforce. UPS’ management has reached an agreement in principle with Amazon to lower the latter’s volume by more than 50% by June 2026. According to Carol Tome, UPS’ chief executive officer, Amazon was not its most profitable customer.
FDX’s Price Performance, Valuation & Estimates
Shares of FDX have gained in excess of 6% in the past six months, outperforming its industry.
6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FDX trades at a 12-month forward price-to-earnings ratio of 11.92X, making it expensive compared with industrial levels.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FDX’s fiscal second-quarter, third-quarter, full-year 2026 and 2027 earnings has been revised downwards over the past 60 days.
Image Source: Zacks Investment Research
FDX’s Zacks Rank
FDX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.