PHOENIX - Knight-Swift Transportation Holdings Inc. (NYSE: KNX), a major North American freight transportation provider, has announced an increase in its quarterly cash dividend from $0.14 to $0.16 per share of common stock, marking a $0.02 rise. This decision was made by the company's board of directors and reflects a consistent pattern of dividend growth over the past five years, with a total increase of 167%.
The new dividend is scheduled to be paid on March 25, 2024, to shareholders of record as of March 8, 2024. This increment is in line with Knight-Swift's cash dividend policy, which is reviewed by the board each quarter based on the company's financial performance.
Knight-Swift operates as one of the largest diversified freight transportation companies in North America, offering a wide array of truckload transportation and logistics services, including less-than-truckload (LTL) services.
This news article is based on a press release statement from Knight-Swift Transportation Holdings Inc.
InvestingPro Insights
In light of Knight-Swift Transportation Holdings Inc.'s recent dividend increase, a glance at the company's performance metrics and market sentiment offers additional context for investors. The company's market capitalization stands at a robust $9.34 billion, and it has maintained a positive trajectory over the last three months with an 18.18% price total return, indicating investor confidence and market momentum. While the revenue has seen a slight decline of 3.86% over the last twelve months as of Q4 2023, Knight-Swift's gross profit margin remains healthy at 27.51%, underscoring its ability to maintain profitability amidst market fluctuations.
One InvestingPro Tip that stands out is Knight-Swift's commitment to shareholder returns, having raised its dividend for 4 consecutive years and maintained dividend payments for 20 consecutive years. This is complemented by a notable dividend growth of 16.67% in the last twelve months as of Q4 2023. However, investors should note that analysts have revised their earnings expectations downwards for the upcoming period, which could signal caution in the near term. Additionally, the company is trading at a high earnings multiple with a P/E ratio (adjusted) of 40.35, suggesting a premium valuation that investors might want to consider in their analysis.
Knight-Swift's next earnings date is set for April 18, 2024, which will provide further insights into the company's financial trajectory and its ability to sustain dividend growth. For those interested in a deeper dive into the company's financials and future prospects, there are additional InvestingPro Tips available. A subscription to InvestingPro is currently on a special New Year sale with a discount of up to 50%. To get an extra 10% off a 2-year InvestingPro+ subscription, use coupon code SFY24, or SFY241 for an additional 10% off a 1-year subscription. With these tools at hand, investors can make more informed decisions backed by real-time data and expert analysis.
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