In the last ten years, C.H. Robinson Worldwide (CHRW) has raised its dividend per share from $0.88 to $1.84 and has paid dividends consistently. The logistics giant has a dividend payout ratio of ~50%. Since the company went public in 1997, it has returned $5.6 billion to shareholders at a compound annual rate of 22%. The iShares Transportation Average ETF (IYT) has an exposure of 4.5% to CHRW and 42.3% to the airline sector.
Comparing CHRW’s and peers’ stock returns
On June 28, CHRW closed at $83.53 and had a market capitalization of $11.6 billion. The stock has returned 24.3% in the past year and 59.3% in the past five years. Peers’ five-year returns are as follows:
- Old Dominion Freight Line (ODFL): 260.2%
- FedEx (FDX): 129.9%
- JB Hunt Transport Services (JBHT): 33.8%
- United Parcel Service (UPS): 22.4%
- XPO Logistics (XPO): 451.4%
- Expeditors International of Washington (EXPD): 91.8%
- Saia (SAIA): 170.7%
- YRC Worldwide (YRCW): -65.2%
As shown in the graph above, XPO Logistics has grown inorganically through three major acquisitions that have compounded its stock price. In contrast, YRCW has fallen. JBHT and UPS have returned less than CHRW. In the next part, we’ll review analysts’ recommendations for CHRW and peers.