Even as Recession Worries Mount, Some Companies Are Declaring Big Dividend Hikes
Even as worries about a recession grow louder, several companies have been putting through large dividend increases, signaling confidence in their businesses.
On Tuesday global shipper FedEx (ticker: FDX) said it plans to boost its quarterly dividend to $1.15 a share from 75 cents, a 53% increase. That dividend boost far exceeds the one FedEx announced a year ago, when it declared a quarterly disbursement of 75 cents a share, up about 15% from 65 cents.
As of May 9, the average dividend increase this year among S&P 500 companies was 13.4%, according to S&P Dow Jones Indices. That compares with 11.8% for all of 2021 and 8.6% in 2020, when many companies suspended or cut their dividends owing to the pandemic.
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