Benzinga - by Priya Nigam, Benzinga Staff Writer.
FedEx Corp (NYSE: FDX) reported better-than-expected earnings for its first quarter, while sales missed estimates. The company lowered its full-year revenue guidance, but raised its earnings outlook.
FedEx reported first-quarter revenue of $21.7 billion, which missed the consensus estimate of $21.81 billion. The company reported quarterly earnings of $4.55 per share, which beat analyst estimates of $3.74 per share.
With the buzz around FedEx following quarterly results, some investors may be eyeing potential gains from the company’s dividends. As of now, FedEx offers an annual dividend yield of 1.92%, which is a quarterly dividend amount of $1.26 a share ($5.04 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $311,601 or around 1190 shares. For a more modest $100 per month or $1,200 per year, you would need $62,320 or around 238 shares.
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To calculate: Divide the desired annual income ($6,000 or $1,200) by the annual dividend ($5.04 in this case). So, $6,000 / 5.04 = 1,190 shares ($500 per month), and $1,200 / 5.04 = 238 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
FDX Price Action: Shares of FedEx rose 4.5% to close at $261.85 on Thursday.
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Photo: Shutterstock
Latest Ratings for FDX
| Mar 2022 | JP Morgan | Maintains | Overweight | |
| Dec 2021 | JP Morgan | Maintains | Overweight | |
| Dec 2021 | Deutsche Bank | Maintains | Buy |
View the Latest Analyst Ratings
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