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Ryder System (R) Rewards Shareholders With 3.6% Dividend Hike

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Reflective of improving conditions in the United States, as economic activities gather pace, Ryder System, Inc. (R - Free Report) — one of leading players in the Equipment and Leasing space — announced 3.6% hike in its quarterly dividend payout to 58 cents per share (annualized $2.32). The first instalment of the increased dividend will be paid out on Sep 17, 2021 to shareholders as of Aug 23.

Ryder paid out dividends even when the coronavirus-led situation was grim in the United States. The company’s dividend yield, prior to the dividend hike, was 3%. The fact that this Zacks Rank #3 (Hold) Equipment and Leasing company will announce a raise in dividend, when the situation improves, is a small wonder. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ryder has been rewarding shareholders on its common stock with dividends for 45 consecutive years. The raised dividend highlights Ryder 's commitment toward boosting  shareholders’ value and underscores its strong financial condition as well as bright prospects.

The improving freight market conditions in the United States represent a huge positive for Ryder as its Supply Chain Solutions segment revenues increased year over year in the last three reported quarters. The upside can be attributed to new business and higher volumes. The unit is expected to have put up an impressive performance in second-quarter 2021 as well. Results are set to be released on Jul 28.

With the resumption of economic activities, many companies are resorting to shareholder-friendly measures.  Other notable transportation companies to have cleared a dividend hike this year are Expeditors International of Washington (EXPD - Free Report) , J.B. Hunt Transport Services (JBHT - Free Report) and Norfolk Southern Corporation (NSC - Free Report) ).

Investors always prefer an income-generating stock. Therefore, shareholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money in.