Stock dividend increase

Discussion in 'FedEx Discussions' started by bacha29, Jun 7, 2016.

  1. bacha29

    bacha29 Well-Known Member

    X announced this morning a 60% increase in the stock dividend. It will no doubt be made up someplace else.
     
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    What is the current dividend?
     
  3. TheJackal

    TheJackal Active Member

    Going up from .25 to .40
     
  4. bacha29

    bacha29 Well-Known Member

    That's .40 per share per quarter. That adds up and the cash has to come from somewhere and we all not where that is.
     
  5. olroadbeech

    olroadbeech Happy Verified UPSer

    thank you guys. keep working thru your breaks and lunches.. i have several hundred shares and love those dividend checks.
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You have several hundred shares of FedEx stock?
     
  7. bacha29

    bacha29 Well-Known Member

    Happy to hear that but don't lose sight of the fact that it's a yield of only 1%. Don't have to look very hard to find a higher yield than that. Given that the focus now is dividend rather than growth stocks, I believe that X was worried that without a dividend increase the stock price was soon going to head south. So employees and contractors be prepared to deliver even more value for the same money .
     
  8. olroadbeech

    olroadbeech Happy Verified UPSer

    yes I do. what's the problem?
     
  9. Cactus

    Cactus Just telling it like it is

    Happy to say you ain't making any money off me.
     
  10. vantexan

    vantexan Well-Known Member

    You do know that dividends come out of profits? There's no need to "find" the money to pay it. Here's the thing: if mom and pop own 10 shares they'll now get $4 instead of $2.50. Who cares, right? Last I heard Fred Smith owns 22 million shares. Multiply that by .40 to see what he gets EVERY quarter. Plus if a major fund buys 5 million shares just before dividends are due they'll make a quick $2,000,000 in dividends. Which allows our hard working VP's to exercise their stock options to take advantage of the higher price from the buying demand. They don't have to find money to pay the dividend, they have that in increased profits from their cost cutting measures, which included ending the traditional pension and giving minuscule raises. #FedExCares #FedExPride
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I have 722 shares of Apple and use their money (quarterly dividends) to buy more.
     
  12. bacha29

    bacha29 Well-Known Member

    No question about it Van. The higher wage veteran Express drivers will be phased out in favor of lower wage entry level people many part timers who will find advancement and wage increases much harder to obtain. Major shareholders such as pension funds insurance companies, family trusts etc. were the drivers behind the dividend increase. But for the guy who is actually driving the package from point A to point B it will mean doing more for little additional return. A sad situation indeed and for ground contractors who are not operating in a densely populated, cheap and abundant supply labor market the challenges will be even greater.
     
  13. fedex_rtd

    fedex_rtd Active Member

    Let's see what kind of movement takes place in October with the pay raises. If they cheap out on us AGAIN, use this information.

    Of course we could always bring it up at the SFA feedback meetings, but if your station is like mine, we have not had one of those in two years!
     
  14. 59 Dano

    59 Dano Well-Known Member

    2012 called. It wants its black helicopter back.

    The Campaign to Eliminate Older Couriers
     
  15. Cactus

    Cactus Just telling it like it is

    Funny how management can't handle the truth.
     
  16. TheJackal

    TheJackal Active Member

    And how many shares do you own?
     
  17. bacha29

    bacha29 Well-Known Member

    Van is simply explaining why a stock moves up just before going X-dividend. As an interesting side note. Just 2 days after announcing a 60% increase in the stock dividend X Ground unveiled plans to build the largest sort hub in the nation in of all places Allentown Pa . Cost 335 million. I thought to myself. 'why there'? I've known for quite a while that they have several hubs in surrounding areas so I did some research. It's being built near the Allentown airport on land owned by the airport authority, probably gave it to them , has immediate access to several zero toll interstates and has one of the lowest cost labor markets in the Northeast. Not to mention the fact that 42.8% of the town's population (118.000) is Hispanic. More cheap part time labor who I hope enjoy being treated badly because there will be an abundance supply supply of on site.
     
  18. vantexan

    vantexan Well-Known Member

    ?
     
  19. TheJackal

    TheJackal Active Member

    It's a pretty simple question. You seem bitter that the owner of a company is making more than you. The horror!!
     
  20. vantexan

    vantexan Well-Known Member

    No, but a bit bitter about not getting the pay and pension promised. I guess you feel it's ok to lie, cheat, and steal if it lines your pockets.