Earn a 5.8% Yield from FedEx Using This Hack

FedEx FDX has created generational wealth for early investors following its 1978 initial public offering, but the high-growth days for the stock are in the rearview mirror. It also does not have a dividend yield that justifies owning it as a high-yield or income play, as its yield sits at just 2% at the time of this writing.

However, there’s a hack you can use to earn a 5.8% dividend yield from FedEx, and that’s by investing in one of its largest landlords.

Here's how.

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Realty Income Corporation

Realty Income Corporation O is the 7th largest global REIT with over 13,250 commercial properties in its portfolio and a world-class tenant base that includes FedEx, as well as Walgreens, Dollar General, 7-Eleven, LA Fitness, CVS, Walmart, and Tractor Supply.

FedEx is listed as the seventh-largest client of Realty Income in its most recent investor presentation, equating to 2.2% of its annualized contractual rent.

So, by owning Realty Income, you can generate monthly income that is partially attributable to FedEx.

Realty Income currently pays a monthly dividend of $0.2565, equating to an annual dividend of $3.078 per share and giving it a yield of about 5.8% today.

In addition to being a high-yielding monthly income stock, Realty Income is a dividend-growth superstar. It has raised its annual dividend every year since 1994, putting it on pace for 2024 to mark the 30th consecutive year in which it has raised its dividend for investors.

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