After the good run in the technology sector, more and more analysts are now talking about a tech correction. And sector rotation, the last few days and weeks have already shown that the pharma sector is picking up again. That's why I've already introduced you to some of my favorites here.

But in recent days, the transportation and logistics sector has been mentioned again and again.

Der globale Transport- und Logistikmarkt wird im Jahr 2025 ein Volumen von 6529 Milliarden US-Dollar erreichen und bis 2035 auf 10444 Milliarden US-Dollar anwachsen, bei einer geschätzten jährlichen Wachstumsrate von 4,81% von 2026 bis 2035

Diese Prognosen deuten darauf hin, dass der Transport und Logistik-Markt in den kommenden Jahren weiterhin wachsen wird, beeinflusst von Faktoren wie der Globalisierung, dem Wachstum des E-Commerce und technologischen Fortschritten

Among others, stocks like

• UPS $UPS (+0,16%)
• DHL $DHL (+1,4%)

or a great value such as

• $ODFL (-4,28%) Old Dominion

are often mentioned

However, some people know that I am not happy with single-digit profit growth. That's why I've just taken another dive into the engine room.

Or rather in the back of my head, in which I am still hiding

$XPO (-6,08%)
XPO in the back of my mind.

And what did I find when I looked at it, double-digit earnings growth.

And even a tenbagger over the next 10 years, although it was in bear territory last year (consolidation).

Share price
Profit growth %
P/E RATIO
PEG

2026 2027 2026 2027

Old Domin +7.07 +13.34 31.05 27.00 +2.07

DHL +5.05 +14.57 12.36 11.12 +1.11

UPS +6.59 +11.80 14.15 12.58 +6.89

XPO +47,26 +26,28 33,61 26,14 +1,18

My dears, with such nice growth rates, investors should certainly wake the share from its bearish slumber soon.

What is your opinion here?

$XPO (-6,08%)

XPOInc. is a provider of freight transportation services. The company transports goods through its customers' supply chains in North America and Europe. The company operates in two segments: North American Less-Than-Truckload (LTL) and European Transportation. The North American LTL segment provides shippers with geographically dense and day-definite domestic and cross-border services to the United States, Mexico, Canada and the Caribbean. It also includes the manufacture of trailers. The European Transportation segment offers a range of services such as truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, including road/rail and road/short sea combinations. The company serves a customer base in the consumer, commercial and industrial sectors. The company offers XPO Smart, a proprietary suite of intelligent tools and analytics that self-adapts from location to location to increase productivity across all LTL service centers.

XPO Logisitcs - Economic recovery ensures strong prospects for logistics service provider!

Business driver: XPO Logistics (XPO) has established a strong position in the LTL (Less than Truckload) Logistics segment in the transportation and logistics sector in the core US market and is also strongly positioned in Europe, particularly in France and the UK, but also in Belgium and Turkey. Thanks to its focus on the LTL segment, where smaller freight volumes are bundled, XPO Logisitcs is a sought-after logistics partner for retailers and corporate customers from various industries.

Market capitalization in EUR

13.76 billion

Total number of shares in million

117.38

Turnover (bn)

2022 7,72

2023 7,74

2024 8,07

2025 8,11

2026 8,43

Net profit (bn)

2022 0,67

2023 0,19

2024 0,39

2025 0,44

2026 0,53

P/E RATIO

2023 53

2024 39

2025 39

2026 32

Investor Day Presentation

🧠 "If you're in a hurry, walk slowly." - Confucius

Many investors dream of early retirement - financed by regular dividend payouts. But which strategy will get you there faster? A high dividend yield or a consistent dividend increase? The answer depends heavily on individual goals, the investment horizon and personal circumstances.

🔹 Dividend yield

The dividend yield indicates what percentage of the current share price is paid out as a dividend. Companies with a high dividend yield often pay out a large proportion of their profits and cash flow to their shareholders. This is particularly common for large companies and in sectors such as utilities, telecommunications or REITs.

🚨 Attention:

A high payout may mean that the company has hardly any growth opportunities or does not know how to use the capital efficiently. There is also a risk of dividend cuts in difficult economic times.

🔹 Dividend increase

Dividend growth measures how strongly a company's distributions grow over the years. Companies with a high dividend growth rate often start with a lower initial yield, but offer a higher personal dividend yield in the long term.

✅ Advantages:

These companies are usually smaller, grow faster and only pay out a moderate proportion of their profits. This leaves more capital for expansion and future dividend increases. In the long term, investors benefit not only from rising dividends, but often also from a better share price performance.

Which strategy is better for early retirement?

There is no one-size-fits-all answer - the choice depends on the individual situation:

✅ Short-term income strategy:

Those who already want to live off dividends today are more likely to focus on companies with high dividend yields.

✅ Long-term wealth accumulation:

If you have the time, you can focus on dividend growth to generate a strong passive income in the long term.

My personal approach

I pay attention not only to the dividend yield and increase, but also to sustainable growth in profits and sales. It is also crucial that the dividend is covered by free cash flow. For investment-intensive sectors, I use the operating cash flow as a benchmark, for REITs the funds from operations (FFO).

Practical example: $UPS (+0,16%)
vs. $ODFL (-4,28%)
🚚

To compare theory with practice, I compare UPS and ODFL - two industry-related companies from the transportation sector.

📌 UPS stands for a company with a higher dividend yield.

📌ODFL on the other hand, stands for a company with a higher dividend increase.

As can be seen from the charts, the pattern described is confirmed:

📉 UPS offers an attractive dividend yield in the short term, but in view of the weak share price performance, this could be seen more as "pain and suffering".

📈 ODFL on the other hand, is growing more dynamically, continuously increasing its dividend and at the same time showing a significantly better and more stable share price performance.

➡️ Conclusion:

At first glance, the high dividend yield strategy may appear more tempting, as it generates higher payouts in the short term. However, a look at the long-term development shows a different picture.

Anyone who has invested in the last 10 years on $UPS (+0,16%) have actually been able to achieve a higher cumulative dividend yield.

But over a period of 20 years the ratio is reversed: Due to the steady increase in dividends, the payout grows at $ODFL (-4,28%) so strongly that the dividend yield calculated on the original investment is significantly higher than for $UPS (+0,16%) .

In addition to the higher dividend income, investors in $ODFL (-4,28%) also benefit from a significantly better and more stable share price performance, which further increases the overall return potential. This example shows that it pays off in the long term to invest in companies with solid dividend increases and sustainable growth.

💬 Which strategy do you prefer? High initial yield or long-term dividend growth? Let us know in the comments! 🚀💰

Disclaimer:

This analysis is for information purposes only and does not constitute investment advice or a recommendation to buy/sell financial instruments. It is not an invitation to trade in securities. Historical performance is not an indicator of future results. Investments in securities involve risks and should be carefully considered.

⚠️ Important note: The selected examples $UPS (+0,16%)
and $ODFL (-4,28%) serve to illustrate extreme contrasts between high dividend yields and high dividend growth. They are deliberately chosen to highlight the difference, but do not represent the entire market or every possible investment strategy.

$UNH (-0,11%) I understand today because of DoJ investigations etc. but what about $ODFL (-4,28%) the -8.6%, did something important happen? Does anyone know?

I am currently looking for companies that are active in the industrial sector and came across $ODFL (-4,28%) I came across. It's a solid company with good figures and a moat. The share price is also tempting at the moment. What do you think?

Hello folks,

I have been wanting to buy a stock in the transportation sector for a long time.

But I am currently unsure between these 3 stocks.

$DPW (+1,4%)
$ODFL (-4,28%) and $DSV (+1,08%)

I find Deutsche Post interesting at the moment because they are a bit cheaper and have a reasonable dividend of 4.46%.

My investment goal is of course for a long time.

I would be very happy to hear your opinions. :)

Repurchase the store runs 👍🏻