We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Transports on Dividend-Hiking Spree: 3 Stocks to Watch out for
Read MoreHide Full Article
Stocks in the transportation space have been benefiting from the gradual re-opening of economies and the resultant uptick in economic activities this year. Evidently, the Zacks Transportation sector has gained 8.6% so far this year.
Image Source: Zacks Investment Research
The rosy scenario surrounding the above stocks can be gauged from the fact that key sectoral players like Union Pacific Corporation (UNP - Free Report) , Trinity Industries (TRN - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) have announced an increase in their respective quarterly dividend payouts over the past week.
Given this backdrop, let’s delve deeper to unearth the factors responsible for the buoyancy surrounding the sector.
The widespread vaccination programs across the globe have been the driving factor behind the resumption of economic activities so far. Having received the jabs, people are now more confident to go out without the fear of contracting the virus. In fact, the freight scenario in the United States became quite bright, riding on the improved economic conditions. Per October’s Cass Freight Shipments Index report, shipment volumes climbed 4% from the September levels. The reading was up 2.8% month over month on a seasonally adjusted basis.
The various channels of the transportation sector like railroads and trucking companies are gaining from the continued improvement in freight demand amid the rebounding U.S. economy. Per the American Trucking Associations’ latest report, the advanced seasonally-adjusted-for-hire truck tonnage index inched up 1.8% in October from the year-ago levels. This has been the largest year-over-year uptick since May. Per chief economist Bob Costello, “The combination of solid retail sales, inventory rebuilding, and generally higher factory output offset some areas of softer freight growth, like home construction, in October.
Airlines in the transportation sector are also benefiting from increased air-travel demand. The substantial air traffic during the Thanksgiving holiday period last month is an indication that people are again resorting to air travel. On Nov 28, the Transportation Security Administration screened 2,451,300 people, the maximum since Feb 15, 2020.
The gradually bettering scenario naturally bolstered the revenue streams of companies in this widely-diversified sector. As a result, the financial strength of most of these entities improved. Courtesy of their financial prosperity, many transportation stocks resorted to rewarding their shareholders with a dividend hike.
Below, we present three transportation stocks that have announced a dividend raise in the past seven days.
Union Pacific has a market capitalization of $159.7 billion. With economic activities gathering pace, the overall volumes are rising. We are also pleased with UNP’s efforts to promote safety and enhance productivity.
Mirroring the improving conditions in the United States as economic activities pick up the pace, Union Pacific announced a 10% hike in its quarterly dividend payout on Dec 10 totaling $1.18 per share (annualized $4.72). The first installment of the increased dividend will be paid out on Dec 30, 2021 to its shareholders as of Dec 20. UNP, currently carrying a Zacks Rank #3 (Hold), paid out dividends on its common stock for 122 consecutive years. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
C.H. Robinson, with a market capitalization of $13.6 billion, approved a 7.8% raise in its quarterly dividend on Dec 9. CHRW raised its quarterly cash dividend to 55 cents per share (annually: $2.20) from 51 cents. The new dividend will be paid out on Jan 3, 2022, to the shareholders of record as of Dec 15, 2021.
The move reflects C.H. Robinson’s intention to utilize free cash for enhancing its shareholders’ returns. CHRW, currently sporting a Zacks Rank #1, is benefiting from higher pricing and expanded volumes across most of its service lines, thanks to brightening freight market conditions. Total revenues jumped 42.4% year over year in the first nine months of 2021, with revenue strength across all segments. Amid this buoyancy, CHRW’s strategy to up its dividend is not surprising.
Trinity Industries has a market capitalization of $2.8 billion. TRN announced a 9.5% increase in its quarterly dividend on Dec 10. TRN raised its quarterly cash dividend to 23 cents per share (annually: 92 cents) from 21 cents. The new dividend will be paid out on Jan 31, 2022, to its shareholders of record as of Jan 14.
Trinity Industries’ cash position is encouraging. Additionally, TRN’s cost-reduction initiatives are helping it partly offset the coronavirus-related adversities on its operations. Upbeat railcar demand is an added positive for TRN, which currently has a Zacks Rank of 3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Transports on Dividend-Hiking Spree: 3 Stocks to Watch out for
Stocks in the transportation space have been benefiting from the gradual re-opening of economies and the resultant uptick in economic activities this year. Evidently, the Zacks Transportation sector has gained 8.6% so far this year.
The rosy scenario surrounding the above stocks can be gauged from the fact that key sectoral players like Union Pacific Corporation (UNP - Free Report) , Trinity Industries (TRN - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) have announced an increase in their respective quarterly dividend payouts over the past week.
Given this backdrop, let’s delve deeper to unearth the factors responsible for the buoyancy surrounding the sector.
The widespread vaccination programs across the globe have been the driving factor behind the resumption of economic activities so far. Having received the jabs, people are now more confident to go out without the fear of contracting the virus. In fact, the freight scenario in the United States became quite bright, riding on the improved economic conditions. Per October’s Cass Freight Shipments Index report, shipment volumes climbed 4% from the September levels. The reading was up 2.8% month over month on a seasonally adjusted basis.
The various channels of the transportation sector like railroads and trucking companies are gaining from the continued improvement in freight demand amid the rebounding U.S. economy. Per the American Trucking Associations’ latest report, the advanced seasonally-adjusted-for-hire truck tonnage index inched up 1.8% in October from the year-ago levels. This has been the largest year-over-year uptick since May. Per chief economist Bob Costello, “The combination of solid retail sales, inventory rebuilding, and generally higher factory output offset some areas of softer freight growth, like home construction, in October.
Airlines in the transportation sector are also benefiting from increased air-travel demand. The substantial air traffic during the Thanksgiving holiday period last month is an indication that people are again resorting to air travel. On Nov 28, the Transportation Security Administration screened 2,451,300 people, the maximum since Feb 15, 2020.
The gradually bettering scenario naturally bolstered the revenue streams of companies in this widely-diversified sector. As a result, the financial strength of most of these entities improved. Courtesy of their financial prosperity, many transportation stocks resorted to rewarding their shareholders with a dividend hike.
Below, we present three transportation stocks that have announced a dividend raise in the past seven days.
Union Pacific has a market capitalization of $159.7 billion. With economic activities gathering pace, the overall volumes are rising. We are also pleased with UNP’s efforts to promote safety and enhance productivity.
Mirroring the improving conditions in the United States as economic activities pick up the pace, Union Pacific announced a 10% hike in its quarterly dividend payout on Dec 10 totaling $1.18 per share (annualized $4.72). The first installment of the increased dividend will be paid out on Dec 30, 2021 to its shareholders as of Dec 20. UNP, currently carrying a Zacks Rank #3 (Hold), paid out dividends on its common stock for 122 consecutive years. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
C.H. Robinson, with a market capitalization of $13.6 billion, approved a 7.8% raise in its quarterly dividend on Dec 9. CHRW raised its quarterly cash dividend to 55 cents per share (annually: $2.20) from 51 cents. The new dividend will be paid out on Jan 3, 2022, to the shareholders of record as of Dec 15, 2021.
The move reflects C.H. Robinson’s intention to utilize free cash for enhancing its shareholders’ returns. CHRW, currently sporting a Zacks Rank #1, is benefiting from higher pricing and expanded volumes across most of its service lines, thanks to brightening freight market conditions. Total revenues jumped 42.4% year over year in the first nine months of 2021, with revenue strength across all segments. Amid this buoyancy, CHRW’s strategy to up its dividend is not surprising.
Trinity Industries has a market capitalization of $2.8 billion. TRN announced a 9.5% increase in its quarterly dividend on Dec 10. TRN raised its quarterly cash dividend to 23 cents per share (annually: 92 cents) from 21 cents. The new dividend will be paid out on Jan 31, 2022, to its shareholders of record as of Jan 14.
Trinity Industries’ cash position is encouraging. Additionally, TRN’s cost-reduction initiatives are helping it partly offset the coronavirus-related adversities on its operations. Upbeat railcar demand is an added positive for TRN, which currently has a Zacks Rank of 3.