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New Dividend: 31 cents quarterly (per share)
Dividend Percent Increase: 6.9%
Current Yield: 3.47%
Ryder System(R - Get Report) is a major name in the truck rental and leasing business, focusing especially on recurring commercial clients who don't need or want to part with the capital required to purchase their own truck fleets. Ryder's ability to hang onto its margins has been impressive, particularly given the scale-down in revenues that the firm saw in the past two quarters.
High oil prices are a big headwind for Ryder, as customers opt to look for alternatives to traditional over-the-road transportation, but this firm has managed to eke out consistent performance in spite of commodity swings. This quarter, they should work in Ryder's favor for a change.
After Wednesday's 6.9% dividend hike, Ryder now pays out a quarterly dividend of 31 cents per share, a 3.47% yield at current price levels. While Ryder makes a solid core income holding for investors looking for exposure to the transports sector, I'd recommend sitting on the sidelines for now -- Ryder has been in a sustained downtrend since January. From a technical standpoint, it makes sense to stand clear until shares find a bottom (and a bigger yield).
Ryder was one of the
10 Worst-Performing S&P 500 Stocks in the Second Quarter.