FedEx Corporation (NYSE:FDX) was flying more than 15% higher on Tuesday after the company announced it will raise its quarterly dividend from 75 cents per share to $1.15 per share.

The transportation, e-commerce and supplies company headquartered in Memphis, Tennessee, also said it would unveil additional details on how it plans to increase shareholder value at its investor day scheduled for June 28 and June 29.

The news of the increased dividend comes at an ideal time as traders and investors look for less risky investments amid a bearish market cycle. Some investors may be searching for stocks with high dividends to park their money in until the outlook improves and the general markets become less volatile.

Although FedEx was trading in sympathy with the S&P 500, having lost 20% between Jan. 4 and Monday, Tuesday’s news caused FedEx to erase a good portion of the loss to trade about 12% down from its 2022 highs.

The stock has much to prove yet before entering into a bull cycle, which may provide traders and investors an entry point lower than the current share price. For more conservative investors, FedEx would look more secure if the stock was able to regain support at the 200-day simple moving average (SMA)

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The FedEx Chart: On Tuesday, FedEx attempted to regain support at the 200-day SMA but failed and wicked from the level. The surge came on higher-than-average volume, however, which indicates a huge amount of interest has returned to the stock, which could allow FedEx to regain the important level if high volume continues on Wednesday.

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Photo: Dennis Diatel via Shutterstock