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C.H. Robinson (CHRW) Cheers Investors With Dividend Hike

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In a shareholder-friendly move, C.H. Robinson Worldwide CHRW announced a hike in its dividend payout. The move reflects the company’s intention to utilize free cash for enhancing shareholders’ returns.

C.H. Robinson raised its quarterly cash dividend to 55 cents per share (annually: $2.20) from 51 cents (annually: $2.04). The new dividend will be paid to shareholders on Jan 3, 2022, of record as of Dec 13, 2021. The dividend yield, based on the new payout and its Dec 9 closing price, is 2.2%.

C.H. Robinson’s board has also boosted the company’s share repurchase authorization by an additional 20 million shares. CHRW had approximately 2.1 million shares remaining under its share repurchase program, authorized by the board in May 2018.

After temporarily suspending share buybacks in the second and third quarters of 2020 to address the coronavirus situation, C.H. Robinson resumed the same in the fourth quarter of 2020. While buybacks were suspended, the company had been consistently paying dividends. It has paid dividends for more than 20 years now. During 2020, the company returned $209.9 million to shareholders in the form of dividends. In the first nine months of 2021, it returned approximately $663 million to shareholders through a combination of dividends ($209 million) and share buybacks ($454 million).

C.H. Robinson, carrying a Zacks Rank #2 (Buy), is benefiting from higher pricing and volumes across most of its service lines, thanks to improved freight market conditions. Total revenues jumped 42.4% year over year in the first nine months of 2021, with higher revenues across all segments. Amid this buoyancy, the company’s move to raise its dividend is not surprising.

Shares of C.H. Robinson have gained 12.9% in the past three months, outperforming the industry’s 7.1% rise, primarily due to the abovementioned tailwind.

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Other Key Picks

Here are some other top-ranked stocks within the broader Transportation sector:

Expeditors International of Washington EXPD sports a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 29.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Expeditors have appreciated more than 36% so far this year.

Schneider National SNDR carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 21%.

Shares of Schneider National have rallied more than 24% so far this year.

ArcBest Corporation ARCB sports a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 27.4%.

Shares of ArcBest have surged more than 100% so far this year.


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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report

Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report

ArcBest Corporation (ARCB) : Free Stock Analysis Report

Schneider National, Inc. (SNDR) : Free Stock Analysis Report

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