May 28, 2026 a 11:31 am
EXPD: Dividend Analysis - Expeditors International of Washington, Inc.
Expeditors International of Washington, Inc., prominent in the logistics sector, showcases a robust dividend profile with 34 years of consecutive payments and moderate growth rates. The company's financial metrics, including a competitive payout ratio and substantial free cash flow generation, indicate a stable foundation for sustained dividend distributions. Despite a lower yield, the incremental dividend growth positions the company favorably for long-term income-focused investors.
📊 Overview
Expeditors International operates within the logistics sector, providing a relatively steady yet modest dividend yield, coupled with a consistent 34-year history of dividend payments. The table below provides an immediate glance at some key dividend metrics:
| Metric | Detail |
|---|---|
| Sector | Logistics |
| Dividend Yield | 0.98% |
| Current Dividend per Share | 1.53 USD |
| Dividend History | 34 years |
| Last Cut/Suspension | None |
📉 Dividend History
Maintaining a prolonged history of dividend contributions is crucial for attracting dividend-focused investors. Expeditors' stable dividend history, lacking any recent cuts or suspensions, reflects prudent financial management.
| Year | Dividend per Share |
|---|---|
| 2026 | 0.81 USD |
| 2025 | 1.54 USD |
| 2024 | 1.46 USD |
| 2023 | 1.38 USD |
| 2022 | 1.34 USD |
📈 Dividend Growth
Understanding dividend growth is paramount for investors seeking income appreciation over time. The data reflects a growing dividend, with average growth of 8.17% over the past five years, signaling Expeditors' commitment to returning value to shareholders.
| Time | Growth |
|---|---|
| 3 years | 4.75% |
| 5 years | 8.17% |
The average dividend growth is 8.17% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
Payout ratios provide insightful perspectives on dividend sustainability. Expeditors maintains a relatively conservative payout ratio, with an EPS-based ratio of 24.38% and a free cash flow-based ratio of 21.70%, indicative of resilient dividend coverage and potential for future growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 24.38% |
| Free Cash Flow-based | 21.70% |
With an EPS payout ratio of 24.38% and a FCF payout ratio of 21.70%, the company exhibits robust dividend sustainability, allowing room for potential increases without exerting excessive pressure on earnings or cash flow.
💰 Cashflow & Capital Efficiency
The stability of cash flow and capital efficiency are critical in assessing a company's operational effectiveness. Expeditors’ metrics demonstrate a strong cash flow generation capacity relative to its operating cash flow, complemented by prudent capital expenditures.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.71% | 4.37% | 5.34% |
| Earnings Yield | 4.02% | 5.19% | 3.97% |
| CAPEX to Operating Cash Flow | 5.47% | 5.59% | 3.73% |
| Stock-based Compensation to Revenue | 0.63% | 0.61% | 0.63% |
| Free Cash Flow / Operating Cash Flow Ratio | 94.72% | 94.41% | 96.27% |
Expeditors showcases cash flow stability with high free cash flow to operating cash flow ratios, suggesting efficient capital allocation and robust operational liquidity.
📑 Balance Sheet & Leverage Analysis
An analysis of the company's balance sheet reveals a solid leverage structure characterized by minimal debt compared to equity, underscoring financial stability and sound risk management.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 24.22% | 25.59% | 22.08% |
| Debt-to-Assets | 11.66% | 11.97% | 11.67% |
| Debt-to-Capital | 19.50% | 20.38% | 18.08% |
| Net Debt to EBITDA | -0.65 | -0.53 | -0.98 |
| Current Ratio | 1.81 | 1.77 | 2.02 |
| Quick Ratio | 1.81 | 1.77 | 2.02 |
| Financial Leverage | 2.08 | 2.14 | 1.89 |
With low leverage ratios and high liquidity metrics, Expeditors presents a strong balance sheet, capable of weathering economic fluctuations.
📈 Fundamental Strength & Profitability
Profitability matrices signal a company's ability to generate earnings and manage capital efficiently. Expeditors reflects competent returns on equity and assets, supporting robust profit margins demonstrating operational efficiency.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 34.54% | 36.44% | 31.50% |
| Return on Assets | 16.63% | 17.04% | 16.64% |
| Margins: Net | 7.35% | 7.64% | 8.10% |
| Margins: EBIT | 9.88% | 9.82% | 10.11% |
| Margins: EBITDA | 10.40% | 10.40% | 10.83% |
| Margins: Gross | 15.31% | 12.73% | 13.39% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
The company’s strong returns on equity and substantial profit margins from net to gross levels showcase its capability to consistently enhance shareholder value.
📈 Price Development
📊 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
✅ Rating
Expeditors International of Washington, Inc. offers a robust dividend profile with consistent payment history and moderate growth, underpinned by solid financial fundamentals and a resilient balance sheet. Although the yield is lower than some peers, the growth prospects and financial stability make it a reliable choice for dividend-seeking investors aiming for sustainable long-term returns.
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