Question

In: Finance

Make a financial analysis of the dividend policy of the FedEx company for the past five...

Make a financial analysis of the dividend policy of the FedEx company for the past five years(this analysis should be detailed). you can find the data in their annual reports(the data that you think is needed to justify their dividend policy)

You can find their annual reports(for the past five years and more) on Google.

Solutions

Expert Solution

FedEx company has reputation of paying out constant and growing dividend over large period of time and it can be seen from their financial statements that the company has paid the dividend each quarter and it has been on a continuous upside as the company believes in returning upon the profits back to the shareholders to a certain extent and it is increasing its profits and distributing more of the profits in the form of dividend back to the shareholder.

This company has been continuously generating higher amount of profits and it has maintained its reputation by paying out a large chunk of the profits back to the shareholders in form of dividend as it can be visible from their financial statement that company was earlier paying .$15 in 2015 whereas the company has increased that dividend to $.65per quarter in 2019 and 20 so the company has been consistently evil to maintain the payment of the dividend to the shareholders and the company has also grown so the company's shareholders have been the beneficiary of its distributing Dividend policy as they have been rewarded with the higher dividend as company has been able to earn with higher profits


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