FedEx Corp. (NYSE: FDX) announced its board of directors approved a 5% increase in the annual dividend rate following a one-time adjustment related to the FedEx Freight spin-off.

The dividend increase and spin-off adjustment establish an annualized dividend rate of $4.88 for the transition period from June 1, 2026 through December 31, 2026. The board declared a quarterly cash dividend of $1.22 per share on FedEx Corp. common stock.

The dividend will be payable July 7, 2026, to stockholders of record at the close of business on June 22, 2026.

"This dividend increase, coupled with our recent spin-off of FedEx Freight, signals our firm commitment to creating stockholder value," said Claude F. Russ, FedEx Corp. enterprise vice president and interim CFO. "Our dividend is an important element of our disciplined and multifaceted approach to capital allocation."

The announcement follows the company's spin-off of its freight division, which required a one-time adjustment to the dividend rate structure.