ODFL - Old Dominion Freight Line: The Dividend Growth Stock That Keeps On Winning
2024-04-30 02:00:50 ET
Summary
- Old Dominion Freight Line is a compelling choice for both dividend and growth investors due to its impressive track record of organic growth and efficient operations.
- The company has a resilient growth strategy, consistently expanding its market share despite intense industry competition.
- ODFL's strong financials, including a healthy balance sheet and robust free cash flow generation, support its ability to navigate economic challenges and pursue strategic growth.
Introduction
This year, it feels like I have written countless articles on my longer-term thesis, which is that "value" stocks are likely a better place than "growth" stocks.
For example, in a recent article , I wrote that Antero Midstream ( AM ) is my favorite high-yield stock and a great way to benefit from the attractive relative valuation of value stocks.
I often refer to the data from JPMorgan ( JPM ), which can be seen below.
- Value stocks are very attractive compared to growth stocks (on a relative basis).
- While the market, in general, is trading above its long-term valuation average, the valuation of growth stocks is much more lofty.
- In an environment of elevated rates, value stocks tend to be the better place to invest.