In a shareholder-friendly move, Expeditors International of Washington, Inc. EXPD has announced a hike in its dividend payout. Expeditors’ board of directors has approved a dividend hike of 3%, thereby raising its quarterly semi-annual cash dividend from 67 cents per share to 69 cents. The raised dividend will be paid out on Jun 15, 2023, to all its shareholders of record as of Jun 1. The move reflects EXPD’s intention to utilize free cash to enhance its shareholders’ returns.
Expeditors International of Washington, Inc. Dividend Yield (TTM)
Expeditors International of Washington, Inc. dividend-yield-ttm | Expeditors International of Washington, Inc. Quote
EXPD has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In May 2022, CSX announced a 15.5% hike in its semi-annual cash dividend to 67 cents per share (annualized $1.34 per share). In 2022, EXPD rewarded its shareholders through a combination of cash dividends ($213.79 million) and share repurchases ($1,581.908 million).
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks like EXPD are safe bets for creating wealth, as payouts generally act as a hedge against economic uncertainty like the current scenario.
EXPD management’s decision to increase its quarterly dividend payout reflects the company’s commitment toward boosting shareholder value, apart from underlining confidence in its business. We believe that such shareholder-friendly initiatives boost investors’ confidence and positively impact this Zacks Rank #3 (Hold) stock's bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Investors interested in better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and Alaska Air Group, Inc. ALK, both carrying a Zacks Rank #2 (Buy).
Copa Holdings has an expected earnings growth rate of 44.31% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15.3% over the past 90 days. Shares of CPA have gained 22.4% over the past six months.
Alaska Air has an expected earnings growth rate of 44.83% for the current year. The Zacks Consensus Estimate for ALK’s current-year earnings has improved 12.9% over the past 90 days. ALK has a long-term expected growth rate of 24.23%.
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