C.H. Robinson Worldwide, Inc.’s (CHRW - Free Report) board recently cleared a quarterly cash dividend of 46 cents per share (or $1.84 annually) to shareholders of record as of Jun 1, payable Jun 29, 2018.
The company has paid dividends for more than 25 years. As of May 10, the company had approximately 139,237,319 outstanding shares.
Additionally, the company’s board has added another 15 million shares to the existing share repurchase authorization of 1.2 million shares, approved in 2013.
Following announcement of the enhanced share buyback program, the stock gained 2.2% to $86.44 at the close of business on May 11.
This move in turn reflects the company’s sound financial position and favorable prospects. Moreover, the financial prosperity of the company in the wake of the new tax law has allowed it to undertake such shareholder-friendly measures. With a significantly reduced tax rate, more cash is left in the hands of the companies to fund these activities among other things.
We remind investors that in December 2017, the company’s board approved a dividend hike of 2.2%. Also, during the first quarter, it returned $134.7 million to shareholders through a combination of dividends and share repurchases.
Such initiatives not only enhance shareholders’ return but also raise the market value of a stock. Through share repurchases and dividend payouts, companies bolster investors’ confidence, persuading them to either buy or hold the scrip.
Zacks Rank & Key Picks
C.H. Robinson carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc. (SKYW - Free Report) , Cathay Pacific Airways Ltd. (CPCAY - Free Report) and Swire Pacific Ltd. (SWRAY - Free Report) . While SkyWest sports a Zacks Rank #1 (Strong Buy), Cathay Pacific Airways and Swire Pacific carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest, Cathay Pacific Airways and Swire Pacific have gained more than 58%, 23% and 3%, respectively, in a year.
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