Of the 20 Dow transportation stocks, Landstar System (LSTR) and Ryder System (R) provided the only dividend enhancements. By Miller's tally, the group distributed $18.41, 2.45% above the $17.97 in 2008's third quarter. Yield: 1.97%.

raised its regular quarterly dividend by 2 cents from 23 cents to 25 cents, payable Sept. 18 to shareholders of record on Aug. 24. This amounts to an increase of 8.7%.

Also last week, Dow Jones Transportation components Ryder System (R) and Landstar System (LSTR) raised their quarterly common dividends. Both truckers hail from the Sunshine State, and both have now enriched their payouts for five years in a row. Ryder, citing continuing strong cash flow and solid access to capital, declared a new quarterly of 25 cents a share, up 8.7% from 23 cents, for a 3.69% yield. Dividends have been paid every year without interruption since 1976. The stock trades around 27. From a 52-week high of 75.09 last summer, it tumbled to 19 in March. Standard & Poor's thinks Ryder is a Hold because of the lagging nature of lease cancellations and the ongoing woes of its auto-related clients. Landstar's boost was a half-penny, to 4.5 cents a share. Payouts were initiated in 2005. At the same time, the company posted a 40% drop in second-quarter profit on a 30% decline in revenue but said that, despite the recession, its trailing 12-month return on average shareholders' equity remained high at 35%. Recently at close to 34, the stock yields 0.53%. Its 52-week range is 55.20 to 27.21. S&P rates it a Strong Buy.

If the Baltic Freight Index seems to go down every day, then why is FedEx (FDX)still going higher? If Ryder's (R) getting hammered, why isn't United Parcel Service ()? Why are the rails still higher when YRC Worldwide (YRCW) can't get out of its own way? Do you know that CSX (CSX) and Union Pacific (UNP) just had nice moves and they aren't giving them up?
Maybe all of these moves are just plain false. You simply can't get stocks to stay up if things are as bleak as the Baltic indicates. It is too predictive. ("The Salutary Effect of Destocking," 4-8-09)

Ryder CEO Greg Swienton told analysts in October that productivity and cost-cutting will offset some of the "significant increase" in pension expenses expected in 2009. According to a company spokesman, Ryder estimates 2008 pension liabilities will be $1.5 billion, slightly higher than Credit Suisse estimates. Credit Suisse expects Ryder to take an 83-cent hit to '09 earnings due to pension-related costs, six times higher than this year's likely penalty.

Cramer said that Ryder CEO Greg Swienton "said there's nothing to ship." Swienton's "an honest, candid CEO," Cramer said, "and he's a realist. He's talking about a reason why the Dow's down 400."

Outperform -- Price 61.86 on April 15
by Baird Securities
R [is to] acquire substantially all assets of Gator Leasing, a full-service leasing, commercial-truck-rental and fleet-services company... . The acquisition's likely [to be] modestly accretive. Our 68 target reflects 13 times "09 estimates... . R's ability to grow earnings through this downturn bolsters case for higher full-cycle valuation ... when the environment improves ... long-term P/E 16 times; LT Ebitda: 4.1 times. Market cap: $3.6 billion.

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