FedEx Corporation: Low Yield, High Growth, & High Total Returns

 

A Good Opportunity for Income Investors?

 


 

When it comes to pandemic-proof plays, the most popular ones have been e-commerce stocks, social media stocks, and other Internet stocks that made the stay-at-home environment more bearable.

 

Indeed, these companies have generally performed much better than others—including the traditional recession-proof sectors like consumer staples and utilities.

 

But technology isn’t the only sector that has been prospering during these extraordinary times. FedEx Corporation (NYSE:FDX), for instance, has also provided huge returns to investors.

 

As a multinational delivery company that has been around since 1971, FedEx doesn’t seem nearly as exciting as the tech names. But its share-price performance has been nothing short of impressive.

 

Take a look at the chart below. Before the COVID-19-induced stock market crash last year, FedEx stock was trading around $160.00 per share. Today, it’s trading at more than $295.00 per share. That’s an increase of more than 84%!

 

And for investors who were buying the dip at about $100.00 per share during the sell-off in March 2020, the return would be nearly 200%.

 

 

Again, we’re not talking about some exciting tech play or “next-big-thing” industry. We’re looking at the returns from a five-decade-old courier.

 

Continue reading …

 

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