Stock Analysis

Schneider National (NYSE:SNDR) Has Announced A Dividend Of $0.08

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Schneider National, Inc. (NYSE:SNDR) has announced that it will pay a dividend of $0.08 per share on the 10th of October. Based on this payment, the dividend yield will be 1.5%, which is fairly typical for the industry.

Check out our latest analysis for Schneider National

Schneider National's Earnings Easily Cover The Distributions

Unless the payments are sustainable, the dividend yield doesn't mean too much. However, prior to this announcement, Schneider National's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS is forecast to fall by 0.9%. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 4.9%, which is comfortable for the company to continue in the future.

NYSE:SNDR Historic Dividend September 7th 2022

Schneider National Is Still Building Its Track Record

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. Since 2017, the dividend has gone from $0.20 total annually to $0.32. This means that it has been growing its distributions at 9.9% per annum over that time. Schneider National has a nice track record of dividend growth but we would wait until we see a longer track record before getting too confident.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Schneider National has seen EPS rising for the last five years, at 22% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

Schneider National Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Schneider National might even raise payments in the future. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All in all, this checks a lot of the boxes we look for when choosing an income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Schneider National that investors should take into consideration. Is Schneider National not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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Schneider National

Schneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth0
Past Performance4
Financial Health6

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet and good value.