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Ryder Rewards Shareholders With 13% Dividend Hike, Stock Up

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Ryder System, Inc. (R - Free Report) has approved a quarterly dividend hike of 13%. Following this announcement, shares of the company were up 2.3% to $82.49 at the close of business on Feb 12.

The move indicates the company’s commitment to add value to shareholders, reflecting its confidence in business growth.

The company’s board has announced a quarterly cash dividend of 52 cents per share, up from the earlier payout of 46 cents. The dividend is payable on Mar 16, 2018 to shareholders of record as of Feb 20. The raise in dividend is driven by the earnings benefit drawn from the new tax law (Tax Cuts and Jobs Act). The provision of the law allows capital expenses to be deducted in the year that incurred the same, thereby reducing tax bills significantly.

Notably, Ryder has an impressive dividend payment history of more than 41 years. The latest is the 166th consecutive quarterly cash dividend. In 2017, the company increased its payout by a couple of cents to 46 cents per share.

Investors always prefer an income-generating stock and a high dividend-yielding one is always much desired. It goes without saying that they are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.

Shares of Ryder have gained 4% in the last three months, outperforming the industry’s decline of 2.4%.


 

 

The dividend rise is likely to further boost the stock.

Zacks Rank & Other Key Picks

Ryder carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader Transportation sector include Deutsche Lufthansa AG (DLAKY - Free Report) , Air France-KLM SA (AFLYY - Free Report) and Allegiant Travel Company (ALGT - Free Report) . While Air France-KLM and Allegiant have the same bullish Zacks Rank of 2 as Ryder, Deutsche Lufthansa sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Deutsche Lufthansa and Air France-KLM have skyrocketed more than 100% in a year. While the Allegiant Travel stock has surged 31.7% in the last six months.

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