Ryder System Increases Dividend to $0.91, Sustained Earnings Growth Supports Future Payments

Ryder System has announced a dividend increase to $0.91, taking the annual payment to 2.0% of the stock price. The company's earnings per share is forecast to rise by 34.3% over the next year, and the payout ratio is expected to be 21% by next year, which is considered sustainable. Ryder System has a sustained record of paying dividends with little fluctuation, with a growth rate of 9.4% per annum over the last decade.

Ryder System, Inc. (NYSE: R) has recently announced an increase in its dividend to $0.91 per share, which takes the annual payment to 2.0% of the stock price. This announcement follows a forecasted increase in earnings per share (EPS) of 34.3% over the next year. The company's payout ratio is expected to be 21% by next year, which is considered sustainable [1].

Ryder System has a sustained record of paying dividends with little fluctuation, with a growth rate of 9.4% per annum over the last decade. This consistent dividend growth, coupled with the company's strong earnings performance, makes Ryder System an attractive option for investors seeking both income and growth.

The company's operational excellence and strategic foresight are evident in its recent financial performance. In 2024, Ryder System achieved 7% revenue growth despite industry headwinds, driven by operational discipline and strategic capital deployment. The company's focus on contractual revenue streams and sustainability-driven fleet modernization positions it to outperform in both upturns and downturns [2].

Ryder System's valuation metrics also indicate that the stock is undervalued by the market. Its P/E ratio of 14.9 is nearly half the industry median of 26.2, while its shareholder yield of 7.2% dwarfs the sector average of 0.7%. The company's free cash flow growth is projected to nearly triple in 2025, further justifying its valuation.

Investors should be aware of the company's risks, including two warning signs identified in an investment analysis. However, Ryder System's strong fundamentals and strategic positioning make it a compelling investment opportunity.

References:
[1] https://finance.yahoo.com/news/buy-ryder-system-inc-nyse-124350137.html
[2] https://www.ainvest.com/news/ryder-system-high-conviction-buy-shareholders-seeking-double-digit-earnings-growth-resilient-logistics-sector-2508/