Covered, compounding — small income. A 0.83% yield on a 23.0% trailing payout is covered income with a wide cushion, but small income: $0.81 twice a year, $1.62 indicated, raised in May 2026 by about 5%, from $0.77 to $0.81, with 31 years of increases counted on a trailing basis. The low payout leaves plenty retained; the low yield is the price run, not a small dividend.
Key risk: Freight cyclicality — air and ocean volumes and rates swing with global trade, so a trade downturn cuts the earnings that fund the semiannual dividend.
Changes if: The trailing payout pushes well past 23.0%, or the semiannual increase streak pauses.
- ✓Payout-coverage check: 23.0% trailing — the $1.62 indicated dividend leaves more than three-quarters of earnings retained.
- !Yield check: 0.83% indicated — $0.81 × 2 at the $196.21 close on Oct. 23, 2026. Real, earned yield, but modest for a single stock — this is a compounder held for growth, not an income holding.
- ✓Dividend growth check: 31 years of increases counted on a trailing basis; the latest raise, declared May 4, 2026, lifted the semiannual dividend about 5%, from $0.77 to $0.81, paid Jun. 15, 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.