With supply chain issues dragging down the global economy, it should come as no surprise that the industrials sector has traded tight but outperformed the S&P 500 overall as the sector is down 10.3% for the year since September 9th when we reviewed the Looking more closely at sectors within the industrials sector, we found that the air freight and logistics sector is down 10.8% year to date, lagging its own sector.
According to MENAFN, the global air cargo market is estimated at US$288 billion in 2022 and is projected to reach US$379 billion by 2027, at a CAGR of 5.6%. With the global economy still struggling due to supply chain issues and geopolitical tensions in Ukraine, air freight and logistics stocks should see steady demand as economic activity picks up.
With back to school well underway and the United States’ holiday season just around the corner, here are 3 air freight and logistics stocks that will benefit from steady consumer demand, slowing inflation, and solid dividend yields.
Expeditors International by Washington Inc EXPD offers a dividend yield of 1.30%, or $1.34 per share annually through semi-annual payments, with an aristocratic track record of growing its dividends for 29 years. Expeditors International is a non-facility logistics service provider primarily focused on international freight forwarding, operating more than 200 full-service office locations worldwide as of 2021, in addition to numerous satellite locations.
Bradley S Powell, Senior Vice President and Chief Financial Officer, commented in the second quarter earnings release, “All of our products performed well during the quarter and we returned $659 million to shareholders in the form of stock repurchases and dividends. With the current economic uncertainty and government action to curb inflation, as well as ongoing challenges across the global supply chain, we believe interest rates will remain elevated volatile at…
