Yahoo Finance Expeditors International of Washington Inc's Dividend Analysis
Exploring the Sustainability and Growth of Dividends
Upcoming Dividend Details
Expeditors International of Washington Inc (NYSE:EXPD) recently announced a dividend of $0.73 per share, payable on June 17, 2024, with the ex-dividend date set for June 3, 2024. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Expeditors International of Washington Inc's dividend performance and assess its sustainability.
Company Overview
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Expeditors International of Washington is a non-asset-based third-party logistics provider, focused on international freight forwarding. It offers services including freight consolidation and forwarding, customs brokerage, warehousing and distribution, and numerous other value-added logistics services. Employing sophisticated IT systems, the firm contracts with airlines and ocean carriers to move customers' freight globally. With more than 200 full-service offices worldwide, Expeditors derives approximately 34% of its revenue from airfreight, 30% from ocean freight, and 36% from customs brokerage and other services.
Dividend History and Growth
Expeditors International of Washington Inc has maintained a consistent dividend payment record since 1993, distributing dividends bi-annually. The company has increased its dividend annually since 1996, earning it the status of a dividend aristocrat. Below is a chart showing the annual Dividends Per Share to track historical trends.
Dividend Yield and Growth Analysis
Currently, Expeditors International of Washington Inc has a 12-month trailing dividend yield of 1.14% and a forward dividend yield of 1.21%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 9.90%, which decreased to 9.30% over a five-year period. Over the past decade, the annual dividends per share growth rate stands at 8.80%. The 5-year yield on cost for Expeditors International of Washington Inc stock is approximately 1.78%.
Evaluating Dividend Sustainability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio of 0.29 as of March 31, 2024, suggests that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. Expeditors International of Washington Inc's profitability rank of 9 out of 10, combined with consistent positive net income over the past decade, underscores its strong profitability.
Future Growth Prospects
Expeditors International of Washington Inc's robust growth rank of 9 suggests a favorable growth trajectory. However, its 3-year revenue growth rate of 3.40% slightly underperforms 64.02% of global competitors. The 3-year EPS growth rate of 7.20% also underperforms 58.69% of global peers. Nonetheless, a 5-year EBITDA growth rate of 16.00%, outperforming 62.5% of global competitors, indicates potential for sustained earnings growth.
Conclusion
The analysis of Expeditors International of Washington Inc's dividend payments, growth rates, payout ratio, and profitability suggests a strong foundation for continued dividend payments. While there are areas where growth could be improved, the overall financial health of the company supports a positive outlook for dividend sustainability. For investors seeking high-dividend yield opportunities, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
