Knight-Swift (KNX) Rewards Investors With 20% Dividend Hike
In a shareholder-friendly move, Knight-Swift Transportation Holdings KNX announced a 20% hike in its dividend payout. The move underscores the company’s sound financial health as it utilizes free cash flow for enhancing shareholders’ returns.
Knight-Swift raised its quarterly cash dividend to 12 cents per share (annually: 48 cents) from 10 cents (annually: 40 cents). The new dividend will be paid to shareholders on Mar 28, 2022, of record as on Mar 4, 2022. The dividend yield, based on the new payout and its Feb 4 closing price, is 0.86%.
Knight-Swift’s consistent measures to reward its shareholders are encouraging. Previously, in April 2021, the company hiked its dividend by 25% to 10 cents. During 2021, KNX returned $120.7 million to shareholders in the form of dividends ($63.5 million) and share buybacks ($57.2 million). The company’s strong free cash flow generation capacity supports its shareholder-friendly activities. KNX generated free cash flow of $908 million in 2021, up 70.8% year over year.
With improved freight market conditions, Knight-Swift reported strong fourth-quarter 2021 results. KNX’s earnings (excluding 9 cents from non-recurring items) of $1.61 per share surpassed the Zacks Consensus Estimate of $1.43. Total revenues of $1,816.9 million also outperformed the Zacks Consensus Estimate of $1,720.5 million. The top and the bottom lines also increased significantly year over year due to higher revenues across all segments.
The improved freight scene is driving growth of the company, owing to which its shares have rallied 33.4% in a year. KNX’s measures to reward its shareholders are also expected to have boosted its shares.
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Zacks Rank & Key Picks
Knight-Swift carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Transportation - Truck industry are as follows:
Marten Transport MRTN sports a Zacks Rank #1 (Strong Buy). The company has an impressive earnings surprise history having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Marten Transport have gained more than 11% in the past six months.
ArcBest Corporation ARCB flaunts a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 31.4%.
Shares of ArcBest have surged more than 34% in the past six months.
J.B. Hunt Transport Services JBHT carries a Zacks Rank #1. The company’s earnings have trumped the Zacks Consensus Estimate in each of the last four quarters, the average beat being 10.2%.
Shares of J.B. Hunt have appreciated more than 14% in the past six months.
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J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Marten Transport, Ltd. (MRTN) : Free Stock Analysis Report
ArcBest Corporation (ARCB) : Free Stock Analysis Report
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