CHRW’s third-quarter dividend
US-based third-party logistics giant C.H. Robinson Worldwide (CHRW) declared a regular quarterly cash dividend of $0.46 per share on August 9. The dividend is payable on September 28 to stockholders of record on September 7.
CHRW has distributed a regular cash dividend to its common stockholders for more than 25 years. The company had ~138.5 million shares outstanding on August 28. The company’s dividend per share is $0.46 for a total quarterly payment of $63.7 million.
CHRW’s past dividends
The chart above shows that C.H. Robinson Worldwide’s annual dividend per share growth sharply declined after the 2008–2009 financial crisis. Before the financial meltdown, CHRW’s yearly dividend per share displayed double-digit growth.
The company’s annual dividend growth rate of 2.0% in 2018 is its lowest growth rate so far in the last 18 years. The company has raised its dividend per share every year since then. The company has also maintained its practice of raising its fourth-quarter dividend almost every year since 2002.
Peer group dividend growth
CHRW’s primary competitor, Expeditors International of Washington (EXPD), raised its quarterly cash dividend to $0.45 per share in May from $0.42 per share paid in the fourth quarter of 2017. Werner Enterprises (WERN) raised its quarterly cash dividend to $0.09 per share from $0.07 per share in the second quarter.
In June, FedEx (FDX) raised its quarterly cash dividend by 30.0% to $0.65 per share from $0.50 per share. In February, United Parcel Service (UPS) increased its quarterly cash dividend by 10.0% to $0.91 per share from $0.83 per share paid in the fourth quarter of 2017.
C.H. Robinson Worldwide (CHRW) is one of the largest third-party logistics (XTN) service providers in the world. Its diverse portfolio includes logistics services, fresh produce sourcing, and managed services. CHRW serves more than 120,000 customers and 73,000 active contract carriers through its integrated network of offices. The company has more than 15,000 employees.
In the next part, we’ll compare CHRW’s dividend payout with its peers and evaluate its free cash flow levels.