In the case of Expeditors, a stock that the fund has owned since 1998, the business edge is its compensation structure. "Its rivals were unionized or otherwise had less flexible approaches to pay, but Expeditors' branch managers can be paid based on how profitable their branches are," he explains. Meanwhile, the company doesn't need much capital, because of the niche it fills in the otherwise capital-intensive business of freight shipping. "It has contracts with shipyards and railroads to get freight in and out of ports," Foreman rhapsodizes. "It can fill up a ship in Asia for one of its clients in days, and get it to the West Coast in record time." The boom in two-way trade across the Pacific has been great news for Expeditors, whose stock price has climbed from a split-adjusted 10.80 a share in early 2000 to about 33 a share today.

declared a semi-annual cash dividend of $.19 per share, a 19% increase from the $.16 per share semi-annual dividend declared in 2008.

Hold - Price 31.04 on Jan. 13
by McAdams Wright Ragen

We are lowering our earnings estimates for Expeditors to account for weakening trade conditions. Our Q408 estimate is now 33 cents, down from 37 cents. This implies full-year earnings of $1.35. The 2009 outlook is now $1.46, a reduction from $1.61. In our view, Expeditors is equipped to handle a transportation slowdown better than most peers, due to its variable cost structure, including a lack of capital-intensive assets. We would look to upgrade Expeditors shares on valuation if the stock traded into the mid-$20s. Market cap: $6.6 billion.

Because my husband works there

Good company

Logistics provider.

Five transports revved up their payouts: Alexander & Baldwin (ALEX), CSX (CSX), Expeditors International (EXPD), FedEx (FDX) and Overseas Shipholding (OSG). CSX, FedEx and Overseas Shipholding, however, pay their new disbursements in the current quarter.

14%

Expeditors (EXPD) was downgraded to Neutral rating from Buy at UBS. Price target AND FY 2008 eps estimates hold at $48 and $1.41, respectively.

Shares Held 100,000

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