Knight-Swift Transportation Holdings (KNX) DIvidends Date & History

Key Takeaways

• Knight-Swift Transportation Holdings Inc. (KNX) provides a trailing twelve-month (TTM) dividend yield of 1.12% and a forward yield of 1.24%.
• The company recently hiked its quarterly dividend to $0.20 per share, payable March 23, 2026, following an ex-dividend date of March 6, 2026.
• KNX has raised its dividend for seven consecutive years, reflecting a shareholder-friendly policy.
• Payout ratio stands at approximately 175-182%, indicating dividends exceed current earnings but are supported by free cash flow of $461 million TTM.
• Compared to trucking peers, KNX's yield is higher than Old Dominion Freight Line (ODFL) at 0.57% and Saia (SAIA) at 0%.
• Positive operating cash flow of $1.27 billion TTM bolsters dividend sustainability.

Dividend Overview

Knight-Swift Transportation Holdings Inc. (KNX), a leading truckload transportation and logistics provider, maintains a quarterly dividend policy. The current TTM annual dividend is $0.72 per share, yielding 1.12%, with a forward annual dividend of $0.80 implying a 1.24% yield. Payments occur quarterly, with the most recent increase to $0.20 per share announced in February 2026. This positions KNX as a modest dividend stock rather than a high-yield or aggressive growth play, appealing to investors seeking reliable income in the cyclical transportation sector. The company has demonstrated commitment through consistent payouts since 2004, though yields remain below broader market averages for dividend aristocrats.

Dividend History and Growth

Knight-Swift has a long history of quarterly dividends dating back to 2004, with no recent cuts. The company has notably increased its dividend for seven straight years, achieving a cumulative 233% growth. Recent examples include a hike from $0.18 to $0.20 per share in early 2026, following prior annual adjustments. This streak underscores a long-term strategy prioritizing shareholder returns amid industry volatility. Over five years, the average dividend yield has hovered around 1.05%, with compound annual growth per share at approximately 17.6%. Management's consistent raises signal confidence in future cash generation from its extensive truckload operations.

Dividend Sustainability and Payout Ratio

KNX's payout ratio is elevated at 175.61% TTM, meaning dividends surpass current earnings per share (EPS). This raises caution, as it suggests limited earnings coverage. However, free cash flow (FCF) TTM of $460.8 million and operating cash flow of $1.27 billion provide ample buffer, easily covering annual dividends of roughly $117 million (based on ~163 million shares). Debt levels are manageable in the capital-intensive trucking sector, and recent FCF positivity contrasts with prior negative years. While the high ratio warrants monitoring, ongoing dividend hikes indicate management's view of sustainability, supported by operational efficiencies.

Dividend Compared to Industry Peers

In the trucking industry, KNX's 1.12-1.24% yield stands out as above average. Peer Old Dominion Freight Line (ODFL) offers 0.57%, reflecting its focus on growth over income. Saia (SAIA) pays no dividend, prioritizing reinvestment, while other less-than-truckload (LTL) and truckload peers like J.B. Hunt (JBHT) maintain yields below 1%. KNX's profile appeals more to income seekers than pure growth names, though industry cycles impact all comparables.

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Is This Stock Attractive for Dividend Investors?

Knight-Swift Transportation Holdings Inc. (KNX) may suit conservative dividend investors tolerant of cyclical risks in transportation. Its modest 1.2% yield and seven-year growth streak offer reliable quarterly income with upside potential from hikes, appealing to those prioritizing consistency over high yields. Long-term holders might value the coverage from robust cash flows despite the elevated payout ratio, which could normalize with earnings recovery. However, income-focused investors wary of ratios above 100% or sector downturns—driven by fuel costs, freight rates, and economic slowdowns—may prefer peers with stronger earnings buffers. Growth-oriented dividend seekers could find appeal in the company's scale as North America's largest truckload carrier, but volatility suits patient portfolios over yield chasers. Overall, it fits balanced income strategies monitoring trucking demand.

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