For long-term investors, that decoupling can be a gift! You get paid more for waiting, and when sentiment recovers, you collect both income and potential upside if the stock recovers. So let’s take a look to think about it TSX Today.
TFII
TFI International (TSX:TFII) is one of North America’s strongest transportation and logistics companies, operating a mix of truckload, less-than-truckload, package and courier, and specialty freight companies. The dividend stock has grown thanks to a disciplined acquisition strategy, buying underperforming airlines and improving them using TFI’s efficiency playbook. Over the years, this approach has turned TFII into a composite machine, consistently increasing margins, diversifying revenue streams and building scale in Canada and the United States. It is also known for strong capital allocation. When markets are weak, TFI buys assets cheaply. When markets are tight, money is raised and the balance sheet is strengthened.
Part of what sets TFII apart is CEO Alain Bédard’s long-standing focus on operational discipline. The dividend stock isn’t shy about restructuring divisions that are underperforming or exiting unproductive segments altogether. That willingness to adapt ensures profitability remains resilient even as freight cycles slow. TFII also returns capital to shareholders through buybacks and a steadily growing dividend, reflecting confidence in its long-term free cash flow. It’s a rare mix of growth, efficiency and income in a cyclical sector.
In income
In its latest earnings results, TFI International reported lower revenue and profit as freight volumes continued to reflect a sluggish North American shipping environment. Demand for truckloads and LTLs remained depressed and prices were competitive, which weighed on margins. Still, the dividend stock maintained strong cash generation and reiterated its long-term operating targets. Management noted that freight conditions were at an all-time low, and early indicators suggested demand will improve next year. The balance sheet remained healthy, giving TFI the flexibility to pursue acquisitions when industry valuations are unusually attractive.
Despite the difficult freight conditions, TFI’s results showed that the core strength of operational flexibility remains intact. Management continued to take cost actions, optimize networks and adjust capacity to protect profitability. They also highlighted that several deals currently under investigation could deliver meaningful earnings growth once freight markets normalize. While short-term results were softer, the dividend stock’s long-term story didn’t change. TFII still expects to emerge from this cycle stronger and leaner, and positioned to gain market share as weaker competitors struggle.
Looking ahead
TFII’s share price is now down about 33% in the past year. Still, the drop in stock prices has opened the door for long-term dividend investors who understand how cyclical stocks behave. The decline is not due to structural problems; it is related to a temporary freight recession affecting the entire industry.
Historically, that’s when TFII creates the most value by acquiring distressed assets, improving them and riding the next upturn. The dividend remains safe, supported by strong cash flow, and management has a long track record of increasing it as profits recover. For investors, buying TFII after a significant pullback means scooping up a quality company at a rare discount while getting paid to wait.
In short
In short, TFII is not down because it is weak; it has fallen because the cycle is. And cycles run. When they do, TFI International tends to recover faster and stronger than most of its peers. And even now, here’s what that dividend could yield with a $7,000 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TFII | $137.12 | 51 | $2.62 | $133.62 | Quarterly | $6,993.12 |
While it may seem like a warning sign, this dip is a real long-term opportunity for dividend-oriented investors.
#Canadian #dividend #stock #investor