THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL) announced today that its Board of Directors has approved an increase in its quarterly cash dividend. The transportation company declared a dividend of $0.26 per share on its common stock, with the payment scheduled for June 19, 2024, to shareholders on record as of June 5, 2024.
This latest dividend marks a 30% increase from the dividend paid in June of the previous year. The increase follows a two-for-one stock split completed by the company in March 2024, indicating a positive adjustment for shareholders post-split.
Old Dominion Freight Line, a key player in the less-than-truckload (LTL) shipping sector, operates a comprehensive network across the continental United States. The company also engages in strategic alliances to extend its LTL services throughout North America and offers a suite of value-added services, including expedited transportation, container drayage, truckload brokerage, and supply chain consulting.
The information regarding the dividend is based on a press release statement from Old Dominion Freight Line, Inc.
InvestingPro Insights
Old Dominion Freight Line (NASDAQ:ODFL) has recently made headlines with its announcement of a dividend increase, reflecting a strong commitment to shareholder returns. In light of this news, a few key metrics from InvestingPro provide additional insights into the company's financial health and market position.
As of the last twelve months leading up to Q1 2024, Old Dominion Freight Line holds a market capitalization of $39.78 billion, underscoring its significant presence in the transportation sector. Despite facing industry challenges, the company demonstrates robust financial performance with a Price/Earnings (P/E) ratio of 31.93, which, while indicating a high earnings multiple, also reflects investor confidence in its earnings potential.
InvestingPro Tips suggest Old Dominion Freight Line's financial prudence, as the company holds more cash than debt on its balance sheet, providing a cushion against market volatility. Furthermore, the company's ability to raise its dividend for seven consecutive years is a testament to its consistent performance and strategic financial management.
However, the company's stock has experienced a downturn over the past month, with a 1-month price total return of -13.57%. This may present an opportunity for investors to consider the company's long-term value, especially since analysts predict profitability for the year, and the company has been profitable over the last twelve months.
For investors seeking a deeper analysis, InvestingPro offers additional tips, including 17 analysts' earnings revisions and the company's liquidity position. With the use of coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 12 additional InvestingPro Tips for Old Dominion Freight Line, which could further inform investment decisions.
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