In a shareholder-friendly move, C.H. Robinson Worldwide, Inc.CHRW announced a hike in its dividend payout. CHRW’s board of directors has approved a dividend hike of 11%, thereby raising its quarterly cash dividend from 55 cents per share to 61 cents.
The raised dividend will be paid out on Jan 3, 2023, to all its shareholders of record as of Dec 2, 2022. The move reflects CHRW’s intention to utilize free cash for enhancing its shareholders’ returns.
Prior to the dividend hike, CHRW paid out a quarterly dividend of 55 cents ($2.20 annualized) per share, which gives it a 2.37% yield at the current stock price. This company’s payout ratio is 27%, with a five-year dividend growth rate of 3.70%. These metrics indicate that CHRW has a solid dividend growth track record over the past five years.
C.H. Robinson Worldwide, Inc. Dividend Yield (TTM)
C.H. Robinson Worldwide, Inc. dividend-yield-ttm | C.H. Robinson Worldwide, Inc. Quote
Last year too (in December 2021), C.H. Robinson hiked its dividend to 55 cents per share (annually: $2.20) from 51 cents (annually: $2.04). The company’s board has also boosted the share repurchase authorization by an additional 20 million shares.
C.H. Robinson is consistently making efforts in rewarding its shareholders through dividends and share buybacks which are encouraging. During the first nine months of 2022, CHRW rewarded its shareholders through a combination of cash dividends ($216.3 million) and share repurchases ($1,023.6 million).
Continuing the shareholder-friendly approach, the company returned approximately $886 million to shareholders through a combination of dividends ($277 million) and share buybacks ($609 million) during 2021.
Dividend-paying stocks not only provide a solid income stream but also have fewer chances of experiencing wild price swings. Dividend stocks, like CHRW, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
CHRW’s management’s decision to increase its quarterly dividend payout in the current turbulent scenario reflects CHRW’s commitment toward boosting shareholder value apart from underlining confidence in its business.
Zacks Rank & Stocks to Consider
C.H. Robinson currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader Zacks Transportation sector are Air Transport Services Group ATSG, Ryder Systems R and Teekay Tankers Ltd. (TNK), each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.
The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days. Shares of ATSG have gained 4.8% over the past year.
Ryder has an expected earnings growth rate of 67.12% for the current year. R delivered a trailing four-quarter earnings surprise of 30.13%, on average.
The Zacks Consensus Estimate for R’s current-year earnings has improved 6.9% over the past 90 days. Shares of R have gained 0.8% over the past year.
Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 142.9% over the past year.
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