After surging in the pandemic and its e-commerce boom, FedEx has drifted back down to earth over the last few years.
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Still, it hasn’t performed badly over the last decade. The delivery and logistics giant certainly isn’t going anywhere in the foreseeable future, either.
So how would a $1,000 investment in FedEx ten years ago have worked out for you?
The Last Decade for FedEx
A decade ago, FedEx shares cost $136.27. As of the time of this writing, they’re worth $264.48, nearly doubling up (94.09% growth) over the last decade.
If you’d bought a thousand dollars worth of FDX stock ten years ago, today it’d be worth $1,940.45.
FedEx stock also pays dividends, which have steadily risen over the last ten years. A decade ago FedEx paid a skimpy dividend yield around 0.46%, while it’s hovered around 2% for the last two years or so. It currently pays around 1.90%. That means the yield has roughly quadrupled in the last decade.
FedEx vs. the S&P 500
No stock exists in a vacuum. How does FedEx compare to the context of the S&P 500?
Unfortunately for FedEx investors, it underperformed the S&P 500. The SPY index fund tracking the S&P 500 saw a 169.15% increase in price over the last decade.
While SPY doesn’t pay the dividend yield today (1.32%) that FDX does, it has paid more in dividends over the last decade. In other words, you could have saved yourself the trouble of analyzing and picking stocks, and still earned a higher return by investing in an index fund.
Should You Invest in FedEx?
As one of the largest shipping and transportation companies in the world, FedEx will likely stick around for a while.
It currently enjoys a “buy” or “hold” rating from most stock analysts. But that doesn’t mean it will outperform the market as a whole in the coming years.
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Still, the relatively strong dividend and stable business model leaves FedEx in the discussion for stock pickers. Keep an eye on rival UPS, and a pulse on how changes at the US Postal Service could impact both FedEx and UPS in the years to come.
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This article originally appeared on GOBankingRates.com: Here’s How Much You’d Have Today If You Invested $1,000 in FedEx Stock 10 Years Ago
