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As a transportation logistics company,
Landstar System(LSTR - Get Report) is focused on helping its customers move their freight shipments by any means necessary. More often than not, it's through trucking -- over-the-road truck freight provides more than 90% of Landstar's sales. With fuel prices on the rise, Landstar also provides options for clients who need air, sea, or intermodal freight forwarding.
Because Landstar is a third-party logistics firm, the company doesn't actually own any of the infrastructure that moves its clients' freight around the world. Instead, Landstar partners with truck owner operators and outsourced freight shippers who bare the balance sheet risks of an otherwise capital-intensive business. That means that Landstar's costs are generally linearly correlated with its sales - an attractive feature when freight volumes are low.
Last week, Landstar announced a 10% increase in its dividend. While the firm's low yield hardly qualifies it as an income name, investors shouldn't ignore the signal a firm throws out when it's willing to part with cash in this unfriendly market.
Landstar is one of TheStreet Ratings'
top-rated transportation infrastructure stocks.
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-- Written by Jonas Elmerraji in Baltimore.