By Sabela Ojea

FedEx said it is increasing its quarterly dividend by about 9.5% to $1.38.

The delivery company on Monday said its board of directors approved raising the quarterly payout to shareholders to $1.38 from $1.26.

The new payout, equal to $5.52 annually, represents a yield of 2.2%, based on the latest closing price of $247.73.

"This dividend increase is an important component of our disciplined approach to capital allocation, which also includes share repurchases and prudently investing in our business," finance chief John Dietrich said.

Write to Sabela Ojea at; @sabelaojeaguix

(END) Dow Jones Newswires

06-10-24 1448ET