J.B. Hunt Transport Services’ (JBHT Quick QuoteJBHT - Free Report) board of directors has approved a new share repurchase plan. As part of the program, which has no expiration date, $1 billion worth of shares are authorized for buyback.

This new program will commence after the existing $500 million share repurchase plan is completed. The existing buyback plan was announced in July 2022. Under this existing program, the transportation company repurchased shares worth $228.3 million in the first six months of 2024.

Details regarding the new repurchase program, including its timing and volume of the buybacks, will be determined by JBHT, based on the prevailing market conditions and other relevant factors. Share buybacks are commonly executed by companies to boost the value of its shareholders. 

Apart from share buybacks, JBHT, currently carrying a Zacks Rank #5 (Strong Sell), rewards its shareholders by paying dividends. In January, J.B. Hunt’s board of directors approved a dividend hike of 2%, thereby raising its quarterly cash dividend from 42 cents per share to 43 cents. (Check JBHT’s dividend history here).

Dividend paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like JBHT, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.

JBHT is not the only player from the Zacks Transportation sector to have hiked quarterly dividends in 2024. In June, FedEx’s (FDX Quick QuoteFDX - Free Report) board of directors approved a dividend hike of 10%, thereby raising its quarterly cash dividend to $1.38 per share ($5.52 annualized). Also, in June, Delta Air Lines’ (DAL Quick QuoteDAL - Free Report) management announced a 50% hike in its quarterly dividend payout. The figure rose to 15 cents per share (annualized 60 cents) from the previous 10 cents (annualized 40 cents).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.