Updated on February 11th, 2026 by Felix Martinez
Expeditors International of Washington Inc. (EXPD) may not be the best-known stock to most investors, given that it operates in a niche segment of global logistics and transportation.
However, the company has a strong track record of creating value for shareholders, both through share price appreciation and dividend growth.
Expeditors has increased its dividend for 31 years, making it a member of the prestigious Dividend Aristocrats.
There are now 69 Dividend Aristocrats. You can download an Excel spreadsheet of all 69, including important metrics such as dividend yields and P/E ratios, by clicking the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
Expeditors has demonstrated strong growth prospects over time, though that growth hasn’t been linear. The cyclical nature of the shipping business creates inherent volatility, but over time, Expeditors has delivered growth.
Expeditors stock looks undervalued today. As a result, this may be a good time to buy this particular Dividend Aristocrat.
Business Overview
Expeditors is a global logistics company that offers services including consolidation and forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-sensitive delivery options, order management, warehousing and distribution, and other customized logistics solutions.
In short, Expeditors offers companies global commerce logistics solutions in all shapes and sizes.
Expeditors was founded in 1979 in Seattle and has since grown from a single office to more than 350 locations across six continents, spanning more than 100 countries and employing more than 18,000 people.
The company reported third-quarter 2025 EPS of $1.64, up 1% year over year and $0.25 above expectations, despite a 4% decline in revenue to $2.9 billion. Net earnings fell 3% to $222 million, and operating income declined 4% to $288 million, reflecting pricing pressure in ocean freight, where volumes decreased 3%.
This was partly offset by a 4% increase in airfreight tonnage and continued strength in higher-margin customs brokerage and other fee-based services.
The company maintained strong capital returns, repurchasing $212 million of shares in the quarter and returning $725 million to shareholders year-to-date through buybacks and dividends.
Management remains focused on aligning costs with a lower-growth freight environment while investing in technology, customs brokerage, and AI-driven logistics solutions, positioning Expeditors for improved profitability when global trade conditions normalize.
Source: Investor Presentation
Growth Prospects
Over the past ten years, the company’s earnings have grown at a compound annual growth rate (CAGR) of 11.2%. It has declined to an 8.6% CAGR over the past five years. We see Expeditors’ earnings-per-share growth at approximately 2% annually, as we expect the economy to slow.
Expeditors remain well positioned to continue seeing revenue growth over time through its diverse revenue streams, but note that recessions, global trade fears, and other shocks pose risks to growth.
Despite short-term headwinds, we believe the long-term trend is higher for volumes. This will help drive revenues higher over time, as it has for many years.
Revenue, operating income, and earnings per share have increased significantly over time, but there have been periods in which all categories showed negative year-over-year growth.
Given the inherently volatile nature of the shipping business, we don’t expect this to change, but we still expect low single-digit earnings-per-share growth over full economic cycles.
We expect revenue to account for most of these gains, while margins may expand slightly, and there is a small tailwind from share repurchases. In total, we forecast 2% annual earnings-per-share growth annually.
Competitive Advantages & Recession Performance
Expeditors’ competitive advantage lies in its size and scale within the global goods transportation niche. Expeditors offers customers the scale of a global shipping company with a diverse network of ports and airports, but with the local and customized options of a smaller firm.
This sets Expeditors apart from others in the logistics industry, but note that such advantages are difficult to come by.
Expeditors’ earnings-per-share during the Great Recession are below:
- 2007 earnings-per-share: $1.21
- 2008 earnings-per-share: $1.37
- 2009 earnings-per-share: $1.12
- 2010 earnings-per-share: $1.59
Expeditors saw its earnings decline during the Great Recession, but only slightly. In fact, Expeditors performed much better than one might have expected, given its global leverage.
The next recession will likely temporarily crimp earnings growth, but it will be far from disastrous for Expeditors. Expeditors exemplified a strong track record during the Great Recession, one of the worst economic periods in recent history.
The company continued to perform well in 2020 and 2021, during another particularly challenging period for the economy. Expeditors achieved record results last year and maintained its impressive streak of annual dividend increases.
Valuation & Expected Returns
Expeditor’s historical growth and future growth potential are impressive, and the stock appears overvalued today. We expect to see $5.90 in earnings-per-share for 2025. At a share price of $161, Expeditors is trading at about 27 times earnings.
We see 18 times earnings as fair value for the stock. Therefore, a decline in the P/E multiple could reduce annual returns by 5% over the next five years.
Combining a 3% earnings-per-share growth forecast with the current 1.0% dividend yield yields total annual returns of -1.0% over the next five years.
We think Expeditors will also continue to grow its dividend at strong rates over time, given the company’s track record.
Expeditors’ current yield is below the S&P 500 average and therefore unattractive to income investors, but it remains a strong dividend-growth stock.
Final Thoughts
Expeditors have been a strong player in the logistics industry for many years. The company has a diverse global network of ports and airport services and offers customized, valuable services to its customers worldwide.
Growth will likely remain volatile and susceptible to disruptions, particularly during recessions, but we see Expeditors as an attractive long-term investment.
Today’s valuation is elevated, while the yield is quite low at just 1.0%.
Expeditors is not appealing to those seeking a high dividend stock or earnings safety and consistency. Overall, the stock is a sell due to low expected returns.
If you are interested in finding more high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:
- The 20 Highest Yielding Dividend Aristocrats
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of 54 stocks with 50+ years of consecutive dividend increases.
- The 20 Highest Yielding Dividend Kings
- The Dividend Achievers List: a group of stocks with 10+ years of consecutive dividend increases.
- The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500. - The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
- The Monthly Dividend Stocks List: contains stocks that pay dividends each month, for 12 payments per year.
- The 20 Highest Yielding Monthly Dividend Stocks
- The High Dividend Stocks List: high dividend stocks are suited for investors that need income now (as opposed to growth later) by listing stocks with 5%+ dividend yields.
The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly: