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06/26/2024 |

FDX Returns $3.8B to Stockholders

Key Points

  • FedEx returned $3.8 billion to stockholders in fiscal 2024.
  • $2.5 billion in stock repurchases and $1.3 billion in dividend payments.
  • Plans to repurchase $2.5 billion of stock in fiscal 2025 and increase annual dividend by 10%.
Significant Shareholder Returns and Financial Strategy

During fiscal 2024, FDX (FedEx) demonstrated its commitment to shareholder value by returning approximately $3.8 billion through a combination of stock repurchases and dividend payments. Specifically, the company repurchased 9.8 million shares, accounting for 3.9% of the shares outstanding at the start of the fiscal year.

These repurchases contributed to an increase in both fourth-quarter and full-year earnings per share by $0.21 and $0.34, respectively. As of May 31, 2024, FedEx still had $5.1 billion remaining under its existing stock repurchase authorizations.

Fiscal 2025 Outlook and Strategic Goals

Looking ahead to fiscal 2025, FedEx plans to repurchase an additional $2.5 billion of common stock, with $1 billion targeted for the first fiscal quarter. The company has also announced a 10% increase in its annual dividend rate, raising it to $5.52 per share.

According to John Dietrich, FedEx‘s executive vice president and CFO, the company is focused on reducing structural costs and lowering capital intensity. Improved earnings and disciplined capital management have enabled FedEx to balance shareholder returns with prudent investments in its business.