Dividend Growth Stock Overview: J. B. Hunt Transport Services, Inc.

J. B. Hunt provides delivery services across North America.
Photo: Flickr.com/Ted Gresham

About J. B. Hunt Transport

J. B. Hunt Transport Services provides transportation and delivery services throughout the continental United States, Canada and Mexico. The company was incorporated in August 1961 and went public in 1983. J. B. Hunt employs over 21,000 people and has its headquarters in Lowell, Arkansas.

J. B. Hunt has four business segments: (1) Intermodal, (2) Dedicated Contract Services, (3) Integrated Capacity Solutions, and (4) Truck.

The Intermodal segment works with most major North America rail carriers to provide intermodal freight solutions to customers. This segment generates about 60% of total company revenues. The Dedicated Contract Services provides final mile delivery services, and designs and executes supply-chain solutions for customers. Most of these services are provided through 3 – 10 year-long cost-plus contracts. The segment provides about 25% of total company revenues. The Integrated Capacity Solutions generates about 10% of company revenues by creating freight brokerage and logistics solutions for J. B. Hunt customers. Finally, the Truck segment provides full-load freight shipments to customers; this segment generates about 5% of company revenue.

The company is a member of the S&P 500 index and trades under the ticker symbol JBHT.

J. B. Hunt Transport’s Dividend and Stock Split History

J. B. Hunt Transport Dividends

J. B. Hunt has compounded dividends at more than 10% over the last 5 years.

J. B. Hunt has grown dividends since 2004. Prior to skipping dividend payments from 2001 – 2003, the company paid dividends from 1990 – 2000. The company generally announces dividend increases in late January, with the stock going ex-dividend in early late February. In January 2016, the company’s announced an 4.8% increase to its payout, to an annualized rate of 88 cents per share.

J. B. Hunt has a modest record of dividend growth. Over the last 5 years, the company has compounded dividends at 11.1% annually and over the last 10 years, the company has compounded dividends at 10.65% annually.

J. B. Hunt has split its stock 3 times since 1992. The first split, in March 1992, was a 3-for-2 split. The subsequent splits – both 2-for-1 – were in September 2003 and May 2005. A single share of stock purchased prior to 1992 would now be 6 shares of stock.

Over the 5 years ending on December 31, 2015, J. B. Hunt Transport Services, Inc. stock appreciated at an annualized rate of 13.38%, from a split-adjusted $38.93 to $72.95. This outperformed the 10.20% compounded return of the S&P 500 index over the same period.

J. B. Hunt Transport’s Direct Purchase and Dividend Reinvestment Plans

J. B. Hunt does not have a direct purchase or dividend reinvestment plan. In order to invest in J. B. Hunt stock, you’ll need to purchase it through a broker. Most brokers will allow you to reinvest dividends without any fee. Ask your broker for more information on how to set this up if you are interested.

Helpful Links

J. B. Hunt Transport Services’ Investor Relations Website

Current quote and financial summary for J. B. Hunt Transport Services (finviz.com)

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