C.H. Robinson Declares Quarterly Cash Dividend

Rhea-AI Summary

C.H. Robinson Worldwide, Inc. (CHRW) has declared a regular quarterly cash dividend of 61 cents ($0.61) per share, payable on April 1, 2024, to shareholders of record on March 1, 2024. The company has a history of increasing dividends annually for twenty-five years, with approximately 116,865,085 shares outstanding as of February 6, 2024.

Insights

Financial Analyst

The declaration of a regular quarterly cash dividend by C.H. Robinson signifies a continuation of the company's commitment to return value to its shareholders. The consistency in paying dividends, especially with an annual increase for twenty-five years, positions the company as a potentially attractive investment for those seeking steady income streams. This can be particularly appealing to risk-averse investors such as retirees.

Moreover, the uninterrupted nature of these dividends could be indicative of C.H. Robinson's financial health and operational stability. Dividends are often paid out of profits and the ability to consistently increase the dividend amount may reflect a robust and growing business model. It's important to assess the dividend yield, which is the dividend per share divided by the share price, as it provides an insight into the return on investment for shareholders.

Market Research Analyst

From a market perspective, C.H. Robinson's announcement can be a signal to the market about the company's performance and future prospects. Investors often view regular and increasing dividends as a sign of confidence from management in the company's future cash flows. It is worth noting that the logistics and transportation industry, in which C.H. Robinson operates, is highly competitive and sensitive to economic cycles. Therefore, the ability to maintain and increase dividends may suggest that C.H. Robinson is managing its resources effectively in a challenging environment.

Additionally, this announcement could be seen as a strategic move to maintain investor interest amidst market volatility. It's crucial to analyze the payout ratio, which is the proportion of earnings paid out as dividends, to ensure that the company is not over-distributing at the expense of reinvestment and long-term growth.

Economist

From an economic standpoint, the dividend policy of a company like C.H. Robinson can reflect broader economic conditions. A steady increase in dividends over an extended period may indicate not only company strength but also resilience in the face of economic fluctuations. This is particularly relevant given the cyclical nature of the logistics sector, which is closely tied to global trade volumes and economic activity.

It's also essential to consider the opportunity cost of the dividends. The funds distributed to shareholders might alternatively be used for reinvestment into the company's operations, research and development, or strategic acquisitions. The decision to pay out dividends instead suggests a calculation that shareholders can better utilize these funds, possibly due to a current lack of high-return investment opportunities within the company.

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) announced that its Board of Directors today declared a regular quarterly cash dividend of 61 cents ($0.61) per share, payable on April 1, 2024, to shareholders of record on March 1, 2024.

C.H. Robinson has distributed uninterrupted dividends that have increased annually on a per share basis for twenty-five years. As of February 6, 2024, there were approximately 116,865,085 shares outstanding.

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $22 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 90,000 customers and 450,000 contract carriers on our platform. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20240207247772/en/

Chuck Ives, Director of Investor Relations

Email: chuck.ives@chrobinson.com

Source: C.H. Robinson

FAQ

What is the ticker symbol for C.H. Robinson Worldwide, Inc.?

The ticker symbol for C.H. Robinson Worldwide, Inc. is CHRW.

When is the regular quarterly cash dividend payable?

The regular quarterly cash dividend is payable on April 1, 2024.

How many shares are outstanding as of February 6, 2024?

As of February 6, 2024, there were approximately 116,865,085 shares outstanding.

How long has C.H. Robinson been increasing dividends annually?

C.H. Robinson has been increasing dividends annually for twenty-five years.