This article first appeared on GuruFocus .
Upcoming Payout and What It Signals for Shareholders
Cargojet Inc ( CGJTF ) recently announced a total dividend of $0.28 per share, with the ex-dividend date set for 2026-09-18. This amount consists of a $0.28 per share cash dividend payable on 2026-10-05. For investors, the ex-dividend date matters because shareholders must own the stock before that date to qualify for the payment. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's look into Cargojet Inc's dividend performance and assess its sustainability.
What Does Cargojet Inc Do?
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Cargojet Inc operates a domestic air cargo co-load network between several Canadian cities. The company also provides dedicated aircraft to customers on an Aircraft, Crew, Maintenance, and Insurance basis, operating between points in Canada, the USA, South America, Europe, and Asia. In addition, it operates scheduled international routes for multiple cargo customers between the USA and Bermuda, between Canada, the UK, and Germany, between Canada and Asia, and between Canada and Mexico. This diversified route network gives Cargojet Inc exposure to both domestic Canadian commerce and cross-border trade flows, which is important for value investors evaluating the durability of the company's cash flows.
A Glimpse at Cargojet Inc's Dividend History
Cargojet Inc has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. This long-standing commitment to returning cash to shareholders is a meaningful signal for income-focused investors, as it demonstrates management's willingness to prioritize shareholder returns across varying economic conditions.
Cargojet Inc has increased its dividend each year since 2011. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cargojet Inc's Dividend Yield and Growth
As of today, Cargojet Inc currently has a 12-month trailing dividend yield of 1.82% and a 12-month forward dividend yield of 1.90%. This suggests an expectation of increased dividend payments over the next 12 months. The gap between the trailing and forward yields is modest, but it points in a favorable direction for income investors who monitor payout trajectories.
Over the past three years, Cargojet Inc's annual dividend growth rate was 7.80%. Extended to a five-year horizon, this rate increased to 8.30% per year. And over the past decade, Cargojet Inc's annual dividends per share growth rate stands at 8.60%. This steady acceleration across time frames reflects a disciplined approach to dividend policy rather than sporadic increases.
Based on Cargojet Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cargojet Inc stock as of today is approximately 2.71%. Yield on cost measures the annual dividend rate divided by the original purchase price, helping long-term holders gauge the income their initial investment now generates.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Cargojet Inc's dividend payout ratio is 1.16. And this may suggest that the company's dividend may not be sustainable.
Cargojet Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cargojet Inc's profitability 8 out of 10 as of 2026-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years, a track record that supports the view that its core operations remain fundamentally sound despite the elevated payout ratio.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cargojet Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Strong growth provides the earnings expansion needed to eventually bring the payout ratio back to a more comfortable level.
Revenue is the lifeblood of any company, and Cargojet Inc's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. Cargojet Inc's revenue has increased by approximately 10.40% per year on average, a rate that outperforms approximately 70.45% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Cargojet Inc's earnings increased by approximately -28.50% per year on average, a rate that outperforms approximately 15.09% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -7.50% outperforms approximately 18.89% of global competitors. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a common proxy for operating cash flow, so this trend warrants monitoring alongside the dividend commitment.
Next Steps for Dividend-Focused Investors
Cargojet Inc presents a mixed picture for dividend investors. On one hand, the company has raised its dividend every year since 2011, earning dividend achiever status, and its forward yield of 1.90% exceeds its trailing yield of 1.82%, implying continued growth ahead. On the other hand, a payout ratio of 1.16 means the company is distributing more than it earns, and negative trends in EPS and EBITDA growth raise legitimate questions about how long the increases can continue without a turnaround in profitability.
Value investors should weigh the company's strong revenue growth and profitability rank against the stretched payout ratio and declining earnings metrics. The upcoming $0.28 per share payment, payable on 2026-10-05 to shareholders of record before the 2026-09-18 ex-dividend date, is secure in the near term, but the longer-term trajectory depends on whether earnings can recover to support the payout. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener .
