FedEx (FDX) has generated significant returns over the past few months as the company benefited from a pandemic-driven surge in e-commerce activities and played an important role in delivering COVID-19 vaccines. But even though the company is still benefiting from vaccine shipments, does the stock have the potential to deliver further upside? Read on.While companies in most sectors suffered setbacks amid the COVID-19 pandemic, FedEx Corporation (NYSE:FDX) managed to generate impressive returns, benefiting from the pandemic-driven surge in e-commerce demand. The stock has gained 123.9% over the past year and 12.2% over the past three months to close yesterday’s trading session at $299.30.
Its shares have more than doubled since hitting their 52-week low of $129.28 on June 26, 2020. As major economies gradually reopen, FDX is expected to witness even more demand for its products and services and its cross-border e-commerce technologies and e-commerce transportation solutions. Also, the company has been playing an important role in delivering COVID-19 vaccines, from which it is benefiting.
FDX has announced a 15% increase in its quarterly dividend from the previous $0.65 per share dividend to $0.75 per share, payable on July 12, 2021. The steep dividend increase reflects FDX’s sound financial position and commitment to rewarding shareholders.