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


Related Solutions

Describe the dividend policy of the FedEx company? Do the needed financial analysis that is related...
Describe the dividend policy of the FedEx company? Do the needed financial analysis that is related to this policy(your analysis should include a clear justification of everything is going on within the company)(provide a detailed and long answer)
A company is considering the following two dividend policies for the next five years. Year Policy...
A company is considering the following two dividend policies for the next five years. Year Policy #1 Policy #2 1 $4.00 $6.00 2 $4.00 $2.70 3 $4.00 $5.00 4 $4.00 $3.10 5 $4.00 $3.20 Create an Excel spreadsheet to organize your answers to the following problem, and submit your Excel file as an attachment Part 1: How much total dividends per share will the stockholders receive over the five year period under each policy? Part 2: If investors see no...
Outline the financial strengths and weakness for UPS and FedEx.
Outline the financial strengths and weakness for UPS and FedEx.
Analyse the ANZ's dividend policy. Should the company follow a progressive dividend policy? Critically evaluate factors...
Analyse the ANZ's dividend policy. Should the company follow a progressive dividend policy? Critically evaluate factors that are affecting corporate dividend policy and how your company's dividend policy may have influenced its capital structure and share price.
With a Microsoft's financial statement (any sources are accept!) please make Financial analysis with ·      Trend analysis...
With a Microsoft's financial statement (any sources are accept!) please make Financial analysis with ·      Trend analysis ·      Common size analysis ·      Ratio analysis ·      Dupond analysis (long-answer)
When an organization decides on a new financial policy and to pay a dividend they affect...
When an organization decides on a new financial policy and to pay a dividend they affect internal operations and signal to external parties. Part I: What impact will different dividend payout levels have on an organizations capital structure? Explain and be specific. Part II: When a company decides to pay a dividend what possible signaling might it be conveying to investors, creditors, and the industry competitors? Be specific and provide an example for each respective party.
Compare and contrast a sticky dividend policy with a residual dividend policy. Which policy is more...
Compare and contrast a sticky dividend policy with a residual dividend policy. Which policy is more widely used by large corporations? What advantages does that policy have over the other?
1) Compare and contrast a sticky dividend policy with a residual dividend policy. Which policy is...
1) Compare and contrast a sticky dividend policy with a residual dividend policy. Which policy is more widely used by large corporations? What advantages does that policy have over the other? 2) The dividend payout ratio equals dividends paid divided by earnings. How would you expect this ratio to behave during a recession? What about during an economic boom? 3) Tang Mine has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were...
What is cvs company dividend policy? Explain with reference
What is cvs company dividend policy? Explain with reference
A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining...
A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She anticipates no payout of earnings in the form of cash dividends during the development stage (I). During the growth stage (II), she anticipates 14 percent of earnings will be distributed as dividends. As the firm progresses to the expansion stage (III), the payout ratio will go up to 36 percent and will eventually reach 59 percent during the maturity stage...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT