Old Dominion Freight Line increases quarterly dividend by 7.7%

THOMASVILLE, N.C. - Old Dominion Freight Line, Inc. (NASDAQ:ODFL) announced Thursday that its Board of Directors has declared a quarterly cash dividend of $0.28 per share of common stock, representing a 7.7% increase from the dividend paid in December 2024. This marks the company’s 8th consecutive year of dividend increases, according to InvestingPro data, demonstrating a consistent commitment to shareholder returns despite the stock trading near its 52-week low of $133.69.

The dividend will be payable on December 17, 2025, to shareholders of record at the close of business on December 3, 2025, according to a press release issued by the company.

Old Dominion Freight Line is one of the largest North American less-than-truckload (LTL) motor carriers, providing regional, inter-regional and national LTL services through an integrated network of service centers across the continental United States.

The company operates as a union-free organization and maintains strategic alliances with other carriers to provide LTL services throughout North America. In addition to its core LTL services, Old Dominion offers container drayage, truckload brokerage, and supply chain consulting.

The dividend announcement comes as part of the company’s ongoing capital allocation strategy. The quarterly payment continues Old Dominion’s practice of returning value to shareholders while maintaining capital for operational needs.

In other recent news, Old Dominion Freight Line reported its second-quarter 2025 earnings, which fell short of analyst expectations. The company posted earnings per share of $1.27, slightly below the anticipated $1.29, and revenue of $1.41 billion, missing the forecasted $1.42 billion. BofA Securities responded by lowering its price target for Old Dominion to $160, maintaining a Neutral rating, while Stephens adjusted its price target to $174, keeping an Overweight rating. Additionally, Benchmark reiterated its Hold rating on the company, citing ongoing volume challenges in the freight industry. Old Dominion announced a general rate increase of 4.9%, effective November 3, 2025, to address rising costs in various operational areas. The rate adjustment aims to partially offset expenses related to real estate, new equipment, technology, and employee compensation. Despite these financial updates, the company continues to face sub-seasonal volumes and macroeconomic pressures impacting freight demand. These developments reflect the current challenges and strategic adjustments Old Dominion is navigating in the freight sector.

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