Old Dominion Freight Line (ODFL) DIvidends Date & History

Key Takeaways

• ODFL pays a quarterly dividend of $0.29 per share, equating to an annual payout of $1.16 and a current yield of 0.53%.
• Low payout ratio of 23.35% indicates strong sustainability and room for future growth.
• The company has achieved dividend growth over 9 consecutive years, with a recent 3.6% increase to $0.29.
• Robust free cash flow (FCF) of approximately $955 million TTM provides ample coverage for dividends.
• Modest yield compared to some trucking peers, but consistent payments appeal to quality-focused investors.

Dividend Overview

Old Dominion Freight Line, Inc. (ODFL), a leading less-than-truckload (LTL) freight carrier, maintains a conservative dividend policy characterized by quarterly payments. The current quarterly dividend stands at $0.29 per share, delivering an annualized dividend of $1.16 and a yield of 0.53% based on recent trading levels around $219. The most recent ex-dividend date was March 4, 2026, with payment on March 18, 2026. ODFL is not classified as a high-yield stock but rather a dividend growth contender, prioritizing reinvestment in its operations while rewarding shareholders consistently. This approach aligns with its focus on operational efficiency and network expansion in the competitive trucking sector.

Dividend History and Growth

ODFL has a track record of reliable quarterly dividends with steady increases. Recent payments include $0.29 in Q1 2026, up 3.6% from $0.28 paid in Q2-Q4 2025. Earlier, the quarterly rate held at $0.28 for much of 2025, following rises from $0.20 in 2023-early 2025 and $0.10-$0.15 in 2021-2022. The company has grown its dividend for 9 years, with a one-year growth rate of 6.60% and multi-year compounded annual growth rates (CAGR) exceeding 20-30% over three- and five-year periods. No cuts have occurred in recent history, underscoring a long-term strategy of balancing growth investments with shareholder returns.

Dividend Sustainability and Payout Ratio

ODFL's dividend appears highly sustainable, supported by a payout ratio of 23.35% against trailing twelve-month (TTM) earnings per share (EPS) of $4.84. This leaves significant earnings retention for reinvestment. Free cash flow (FCF) totaled $955 million TTM, far exceeding the annual dividend obligation of roughly $110 million (based on shares outstanding), providing over 8x coverage. Low debt levels and strong balance sheet further bolster stability, even amid freight market volatility. The conservative payout positions ODFL well for continued growth without straining finances.

Dividend Compared to Industry Peers

In the trucking and LTL sector, ODFL's 0.53% yield is modest. Peer JBHT (J.B. Hunt) offers around 0.79%, while HTLD (Heartland Express) yields 0.74%. Competitors like SAIA and XPO pay no dividends, prioritizing growth. Broader trucking averages hover above 1% for payers like KNX (Knight-Swift) at 1.49%, but ODFL's lower yield reflects its premium valuation and focus on total returns via share buybacks (2.26% yield) and earnings growth.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It efficiently identifies dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more effectively than manual screening. Explore the AI Screener to enhance your research today.

Is This Stock Attractive for Dividend Investors?

Old Dominion Freight Line appeals to dividend growth investors seeking quality over high yields. Its low 0.53% yield may not suit pure income seekers chasing 3-5% payouts, but the 23% payout ratio and 9-year growth streak offer potential for future increases amid strong FCF and EPS expansion. Conservative investors in the transportation sector may value ODFL's consistency—no cuts, quarterly reliability—and balance sheet strength, which provide resilience during economic cycles. Long-term holders prioritizing total returns, including buybacks and capital appreciation from market-leading LTL operations, could find it suitable. However, growth-oriented profiles without dividends like SAIA may compete for aggressive investors. Overall, ODFL suits patient, quality-focused dividend portfolios rather than high-yield strategies.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations