FedEx announced a dividend hike and a major corporate reorganization Wednesday. FDX stock rose out of a buy zone.
During an investor event Wednesday, FedEx said it will raise its quarterly dividend 10% to $1.26 a share.
The shipping giant also will combine the FedEx Ground and FedEx Express delivery networks into one unit, part of its push to slash $4 billion in costs by fiscal 2025.
Earlier, on March 17, the economic bellwether company smashed fiscal third-quarter earnings views and raised its full-year outlook.
FDX Stock
Shares of FedEx gained 1.5% to 229.93 on the stock market today, jumping out of a buy zone. FDX stock topped a 217.48 buy point from a flat base March 17, the MarketSmith chart shows. The 5% buy zone stretches to 228.35.
Rival UPS gained 0.1% Wednesday. UPS stock reversed lower Tuesday, down 0.6% to 189.49. Shares are below a 193.81 buy point.
Growing delivery rival Amazon fell 2.7%.
FedEx Freight will continue to provide less-than-truckload freight services as a stand-alone company, the shipping giant said Wednesday.
The company is looking to cut costs as delivery demand softens and the threat of global recession grows.
