Microsoft Corporation (MSFT), C.H. Robinson Worldwide, Inc. (CHRW): Two Stocks With Wide Moats for Income Investors

C.H. Robinson with increasing dividends

C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is one of the biggest third-party logistic providers with freight transportation services to 42,000 customers around the world. Transportation was its biggest revenue contributor, with $9.68 billion in 2012 revenue. Nearly 84% of its total transportation revenue was derived from truck transportation, while ocean transportation contributed only $84.9 million in revenue.

The company could also fit well in the income portfolios of investors. In the past 10 years, it has increased its dividend from $0.18 per share in 2003 to $1.34 per share in 2012. The dividend payout ratio has been quite reasonable, fluctuating in the range of 27.1% to 45.5%. In 2012, it paid 36.5% of its earnings in dividends.

The market values the company at around 18.14 times its forward earnings. The dividend yield is 2.40%. Interestingly, investment guru Donald Yacktman is also bullish on C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW). In the first quarter of 2013, he accumulated around 1.75 million shares of the company, accounting for nearly 1% of his total portfolio.

My Foolish take

Microsoft Corporation (NASDAQ:MSFT) and C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) would fit well in the income portfolios because of their consistently increasing dividend payments. They also have economies of scale with global leading positions in their respective industries.

The article 2 Stocks With Wide Moats for Income Investors originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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