FedEx Jumps 10% on 53% Dividend Hike, Deal with Activist to Add Directors
2022.06.14 17:17
FedEx (FDX) Jumps 10% on 53% Dividend Hike, Deal with Activist to Add Directors
By Sam Boughedda
FedEx (NYSE:FDX) announced Tuesday it will raise its quarterly cash dividend to $1.15 per share, the company announced, representing a $0.40 per share, or 53% increase from the previous $0.75.
The news has sent FedEx shares more than 12% higher in early Tuesday trading.
The dividend is payable on July 11, with Michael Lenz, FedEx’s Executive Vice President and Chief Financial Officer, stating it reflects the company’s confidence in the trajectory of the business.
In addition to the dividend increase, FedEx also announced that Amy Lane and Jim Vena will join its Board immediately. The additions were made as part of the cooperation agreement with the D. E. Shaw Group, while a third mutually agreed upon director will be added at a later date.
Lane is currently a director of NextEra Energy (NYSE:NEE) and TJX Companies (NYSE:TJX), while she was previously a managing director and group leader at Merrill Lynch & Co. from 1997 until 2002.
Vena has more than 40 years of railroad experience, recently serving as Chief Operating Officer of Union Pacific Corporation (NYSE:UNP).
