Zacks_Analysts' Blog : C.H. Robinson Hikes Dividend - Analyst Blog

The board of directors of C.H. Robinson Worldwide Inc. (CHRW) recently increased the company’s quarterly cash dividend on its common stock by 16% to 29 cents per share. The company will pay the dividend on January 3, 2011 to shareholders of record, at the close of business, on December 10, 2010.  

The rise in dividend was mainly driven by higher volumes across all its segments followed by steady growth in revenues and earnings over the past several years.

C.H. Robinson has increased its fourth quarter cash dividend by 4 cents, up 16% from 25 cents paid in September 2010. This is the company's eleventh dividend increase since 2000. The company has been paying dividends for the last 25 years without any interruption. The current dividend yield is 1.33%.

C.H. Robinson possesses a strong balance sheet with $249.4 million in cash and equivalents and no debt. The excess cash available with the company will be utilized to repurchase shares or to pay dividends to its shareholders.

The company faces intense competition from various transportation providers, primarily Expeditors International of Washington Inc. (EXPD) and UTi Worldwide Inc. (UTIW). Recently, both these competitors paid quarterly dividends of 20 cents and 6 cents with dividend yields of 0.71% and 0.3%, respectively.

Based in Minnesota, C.H. Robinson is a third-party logistics company with around 50,000 carriers worldwide. It is one of North America's largest third party logistic companies. As a non-asset based transportation provider, C.H. Robinson provides freight transportation services and logistic solutions to companies in a number of industries.

C.H. Robinson operates a network of 235 offices in North America, South America, Europe and Asia. Most of its revenue comes from providing truck, rail, ocean, and air transportation all over the world. Sourcing and information services are also important components of the company’s business mix.