Invest in Shipping With Expeditors International of Washington (EXPD)

Income investors are buying the future dividend stream of a company.  For long term income investors, Expeditors International is far superior in this regard due to its low dividend payout ratio, increasing earnings, and zero debt.  There is a dividend growth rate for Expeditors International of over 20% over the past five years, while it is negative or zero for Frontline Ltd. (NYSE:FRO), DryShips, Nordic American Tankers, and Teekay Tankers.  If the growth rate of the last five years for the dividend of Expeditors International continues, it will almost double every three years.

Source: The Motley Fool CAPs and Finviz

A major reason that the dividend yield for Expeditors International of Washington is so low is that the stock has surged in recent market action.  Up 20% over the last six months, Expeditors International has gained from the global economy starting to recover from The Great Recession.  With China posting strong gross domestic product numbers last quarter, global commerce should be picking up again.  From that, the share price of Expeditors International of Washington should continue to rise.

The article Invest in Shipping With This One Stock originally appeared on Fool.com and is written by Jonathan Yates.

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