J.B. Hunt Transport Services Inc (NASDAQ:JBHT) - A Reliable Dividend Stock Worth Considering

J.B. Hunt Transport Services Inc (NASDAQ:JBHT) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screener. The company combines a solid dividend track record with decent profitability and financial health, making it a noteworthy option for income-focused portfolios.

Key Dividend Strengths

• Consistent Dividend Growth: JBHT has increased its dividend at an annual rate of 10.61% over the past five years, demonstrating a commitment to rewarding shareholders.
• Reliable Payout History: The company has paid dividends for at least 10 years without any reductions, reinforcing its dependability.
• Sustainable Payout Ratio: With a payout ratio of 30.75%, JBHT retains enough earnings to reinvest in growth while maintaining dividend stability.

Profitability & Financial Health

• Solid Profitability: JBHT earns a Profitability Rating of 5, supported by a Return on Equity (ROE) of 14.22% and a Return on Invested Capital (ROIC) of 9.59%, both above industry averages.
• Strong Balance Sheet: The company holds a Health Rating of 7, with a low Debt-to-Equity ratio of 0.24 and a healthy Altman-Z score of 5.05, indicating minimal bankruptcy risk.

Valuation Considerations

JBHT trades at a P/E ratio of 26.32, slightly below the S&P 500 average. While not cheap, its strong fundamentals and dividend growth potential justify a closer look.

For a deeper dive into JBHT’s financials, review the full fundamental report here.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.