J.B. Hunt Transport Services (NASDAQ:JBHT) was identified by our Best Dividend Stocks screener as a potential candidate for income-focused investors. The company combines a solid dividend profile with reasonable financial health and profitability, making it an interesting option for those seeking steady income.
Dividend Strength
- Reliable Payout History: JBHT has paid dividends for at least 10 years without reductions, demonstrating commitment to shareholders.
- Growing Dividends: The company has increased its dividend at an average annual rate of 10.61% over the past five years, outpacing many peers.
- Sustainable Payout Ratio: Only 31.21% of earnings are allocated to dividends, leaving ample room for reinvestment and future increases.
Financial Health & Profitability
- Stable Balance Sheet: With a Debt/Equity ratio of 0.23, JBHT maintains a conservative capital structure.
- Strong Solvency: An Altman-Z score of 5.05 indicates low bankruptcy risk, outperforming 85% of industry peers.
- Consistent Profitability: The company has remained profitable over the past five years, with a Return on Equity of 14.51%, above the industry median.
Valuation Considerations
JBHT trades at a P/E of 27.14, in line with the broader market but slightly above its sector average. While not cheap, its dividend reliability and growth prospects may justify the premium.
For a deeper look, review the full fundamental report on JBHT.
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Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
