Knight-Swift Transportation Holdings Inc. Announces an Increase in Quarterly Cash Dividend

Rhea-AI Summary

Knight-Swift Transportation Holdings Inc. (NYSE: KNX) has announced a 14% increase in its quarterly cash dividend, now at $0.16 per share of common stock. The company has raised its dividend five times in the past five years, totaling a 167% overall increase. The dividend is payable to stockholders of record on March 8, 2024, and is expected to be paid on March 25, 2024. Knight-Swift is a leading freight transportation company in North America, providing truckload transportation, logistics, and LTL services.

Positive

• Knight-Swift has increased its quarterly cash dividend by 14% to $0.16 per share of common stock.
• The company has raised its dividend five times in the past five years, resulting in a 167% overall increase.
• The dividend is payable to stockholders of record on March 8, 2024, and is expected to be paid on March 25, 2024.
• Knight-Swift is a leading freight transportation company in North America, providing truckload transportation, logistics, and LTL services.

Negative

• None.

Financial Analyst

The announcement of Knight-Swift Transportation Holdings Inc.'s increase in quarterly cash dividend from $0.14 to $0.16 per share represents a strategic move to return additional value to shareholders. This decision, especially given that it marks the fifth increase in the past five years, signals the company's confidence in its financial stability and profitability. The 167% overall increase in dividends over this period may reflect a robust balance sheet and a commitment to shareholder returns, which is often appreciated by income-focused investors.

From a financial perspective, the consistent rise in dividends could indicate that Knight-Swift is generating sufficient cash flows from its operations to support a higher dividend payout. This is a positive sign for investors, as it suggests the company is not only able to maintain its capital expenditures and operational costs but also reward shareholders. However, investors should also consider the payout ratio to assess whether the dividends are sustainable in the long term without compromising future growth opportunities.

Market Research Analyst

As one of North America's largest freight transportation companies, Knight-Swift's performance is closely tied to the health of the overall economy, particularly the demand for freight services. The increase in the dividend could be interpreted as a signal of underlying industry strength or a competitive edge in operational efficiency. This move might also be strategically timed to position Knight-Swift favorably in the eyes of current and potential investors, as the transportation sector can be highly sensitive to economic cycles, fuel prices and regulatory changes.

Investors should also consider the company's ability to adapt to industry challenges such as driver shortages, regulatory compliance and the integration of technology and sustainability practices. The company's investment in a nationwide network and diversified services, including LTL (less-than-truckload) and logistics, suggests a comprehensive approach to market demands, which could be a factor in its financial performance and, by extension, its dividend policy.

PHOENIX--(BUSINESS WIRE)-- Knight-Swift Transportation Holdings Inc. (NYSE: KNX) (the "Company" or "Knight-Swift") announced today that its board of directors ("the Board") has declared the Company’s quarterly cash dividend of $0.16 per share of common stock, which is a $0.02 increase from the Company's existing quarterly dividend of $0.14 per share of common stock. The Company has raised its quarterly dividend five times in the past five years for a 167% overall increase. The Company's quarterly dividends are pursuant to a cash dividend policy approved by the Board. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board each quarter after its review of the Company’s financial performance.

The Company’s dividend is payable to stockholders of record on March 8, 2024 and is expected to be paid on March 25, 2024.

Knight-Swift is one of North America's largest and most diversified freight transportation companies providing multiple truckload transportation and logistics services as well as LTL services. Knight-Swift uses a nationwide network of business units and terminals in the United States and Mexico to serve customers throughout North America. In addition to operating the country's largest tractor fleet, Knight-Swift also contracts with third-party equipment providers to provide a broad range of truckload services to our customers while creating quality driving jobs for our driving associates and successful business opportunities for independent contractors.

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to our declaration of quarterly dividends. Forward-looking statements are based on the current beliefs, assumptions, and expectations of management and current market conditions. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. There can be no assurance that future dividends will be declared. The declaration of future dividends is subject to approval of the Board and various risks and uncertainties, including, but not limited to: our cash flow and cash needs; compliance with applicable law; restrictions on the payment of dividends under existing or future financing arrangements; changes in tax laws relating to corporate dividends; deterioration in our financial condition or results, and those risks, uncertainties, and other factors identified from time-to-time in our filings with the Securities and Exchange Commission. Readers should review and consider the factors that may affect future results and other disclosures in Part II, Item 1A. "Risk Factors" in Knight-Swift's Quarterly Report for the quarter ended March 31, 2023 and Part I, Item 1A., Risk Factors, in Knight-Swift’s Annual Report on Form 10-K for the year ended December 31, 2022, and various disclosures in other press releases, stockholder reports, and filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240202302852/en/

David Jackson, President and CEO, or Adam Miller, CFO - (602) 606-6349

Source: Knight-Swift Transportation Holdings Inc.

What is the new quarterly cash dividend per share for Knight-Swift Transportation Holdings Inc.?

The new quarterly cash dividend per share for Knight-Swift Transportation Holdings Inc. is $0.16.

How many times has Knight-Swift increased its quarterly dividend in the past five years?

Knight-Swift has increased its quarterly dividend five times in the past five years.

When is the dividend payable to stockholders of record?

The dividend is payable to stockholders of record on March 8, 2024.

What type of services does Knight-Swift Transportation Holdings Inc. provide?

Knight-Swift provides truckload transportation, logistics, and LTL services in North America.