1 Dividend Stock Down 40% Year to Date to Buy for Lifetime Income

This dividend stock might be down, but don’t count it out, especially with a dividend to consider.

Market downturns can be unsettling, but they often present unique opportunities for long-term investors. One such opportunity lies with TFI International (TSX: TFII), a leading North American transportation and logistics company. Despite a challenging start to 2025, with the stock down approximately 40% year to date, TFI’s strong fundamentals and commitment to shareholder returns make it a compelling option for those seeking lifetime income.

Canadian Dollars bills

Source: Getty Images

Into earnings

In the first quarter of 2025, TFI reported total revenue of US$1.96 billion, a 5% increase from the same period in 2024. However, net income declined to US$56.0 million from US$92.8 million, and diluted earnings per share (EPS) decreased to US$0.66 from US$1.09. Adjusted net income was US$64.2 million, or US$0.76 per diluted share, compared to US$105.5 million, or US$1.24 per diluted share, in the prior year. The decrease in profitability was primarily due to weaker market demand, particularly in the Less-Than-Truckload and Logistics segments.

Despite these challenges, TFI’s financial position remains robust. The dividend stock generated net cash from operating activities of US$193.6 million in the first quarter (Q1) of 2025, only slightly down from US$200.7 million in Q1 2024. Notably, free cash flow increased by 40% year over year to US$191.7 million, reflecting disciplined capital expenditures and proceeds from asset sales. This strong cash flow supports TFI’s ability to invest in growth opportunities and return capital to shareholders.

Cash when it matters

TFI has a consistent track record of dividend payments, with a current quarterly dividend of $0.62 per share, translating to an annualized yield of approximately 2.15% based on recent share prices. The dividend stock’s dividend has grown at an average annual rate of 27.76% over the past three years, demonstrating a strong commitment to returning value to shareholders. In fact, at current levels, here is how much investors could earn from a $10,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYINVESTMENT TOTAL
TFII$121.3882$2.50$205.00Quarterly$9,956.96

The dividend stock’s strategic acquisitions have also contributed to its growth. In 2024, TFI acquired Daseke, a major flatbed and specialized transportation company, enhancing its Truckload segment’s capabilities and market reach. This acquisition is expected to provide synergies and contribute positively to TFI’s earnings in the coming years.

Bottom line

TFI’s diversified business model, encompassing Less-Than-Truckload, Truckload, Logistics, and Package and Courier segments, provides resilience against market fluctuations. While some segments experienced declines in Q1 2025, the Truckload segment saw a 61% increase in revenue, primarily due to the Daseke acquisition, and an 18% increase in operating income compared to Q1 2024.

Looking ahead, TFI’s focus on operational efficiency, strategic acquisitions, and shareholder returns positions it well for long-term growth. The dividend stock’s strong free cash flow generation and disciplined capital-allocation support its ability to weather short-term challenges and capitalize on future opportunities.

For investors seeking lifetime income, TFI International offers a compelling combination of dividend growth, financial strength, and strategic positioning in the transportation and logistics industry. While the dividend stock’s recent decline may raise concerns, it also presents a potential entry point for long-term investors looking to benefit from the company’s resilience and commitment to shareholder value.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends TFI International. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Woman in private jet airplane
Dividend Stocks

Make $100 a Month Tax-Free: How Much to Invest in Diversified Royalty and Where

The TFSA is the ultimate investment account to place your money and earn tax-free income.

Read more »

man in bowtie poses with abacus
Dividend Stocks

Passive Income From Dividends: What Canadians Can Realistically Expect

Here's the actual dividend math the passive income gurus won't show you.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

RRSP, TFSA or Both? A Quick Guide by Income Level

Your RRSP and TFSA are complementing accounts that you can use to shield your income from taxes.

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Buying Your First Home? The $8,000 FHSA Deduction Most Renters Miss

An eligible renter's $8,000 FHSA contribution can save $2,400 at a 30% tax rate, with the purchase date guiding investments.

Read more »