Yes, FedEx raising its quarterly dividend is a positive sign for the overall economy. It is my belief that an increase in dividends paid out to equity holders is one of many examples of the growth of the economy. Other examples include increased consumer and business sales, higher home prices, and increased factory production.
When shareholders are happy, they are willing to invest more. If FedEx increases its dividends, shareholders will see more of a return on their investment, and will therefore feel as though the company, and their investment, is doing well. In this instance shareholders are more likely to invest more, or at least continue to invest in the company since they are receiving money back on their initial investment, which would be a positive sign for FedEx.
No, FedEx raising its quarterly dividend is not necessarily a positive sign for the overall economy. Despite any success that FedEx has seen in recent years that allow the company to raise their quarterly dividend, that does not mean that other companies are able to do the same. Many companies are still floundering, including smaller businesses and businesses that are less popular than FedEx. Until the majority of companies, both large and small, face complete financial stability it cannot be said that the economy has taken a positive turn.
No, I do not think that FedEx raising its quarterly dividend is a positive sign for the overall economy because the performance of FedEx is not an adequate basis for the state of the American economy. Although I do not believe that FedEx's financial success is directly a positive sign for the overall economy, I do believe that it is a positive sign for FedEx's profitability in the future.