Remarkable S&P 500 Dividend Annual Worth Stock currently down 35%, worthy of long-term investment

Distinguished S&P 500 Dividend Shares, Now 35% Reduced for Permanent Ownership

Old Dominion Freight Line (ODFL) is gearing up for the next freight upcycle with a strategic approach that sets it apart from competitors. In the coming months, the company will boast more doors, more trucks, and more density, enabling it to run freight more efficiently.

Management at Old Dominion has committed around $450 million in capital spending for the year, with half allocated for real estate and service-center expansion, and the other half for tractors and trailers. This investment underscores the company's commitment to long-term growth and reinvestment, a strategy that never takes a back seat to dividend payouts.

In July 2025, Old Dominion's board declared a quarterly dividend of $0.28 per share, marking a 7.7% increase from the payout a year ago. The conservative approach to dividends makes the payout resilient and should allow for steady yearly increases. In the first half of 2025, roughly $119 million of Old Dominion's operating cash flow was used for dividends.

Despite the economic weakness affecting freight demand, Old Dominion managed to increase revenue per hundredweight, excluding fuel surcharges, by more than 5% in the second quarter of 2025. This achievement, even in challenging times, is a testament to Old Dominion's disciplined approach.

The company's balance sheet carries little debt, a factor that positions it well for the future. Old Dominion's strategic balance of returning cash to shareholders while investing in network expansion sets it apart and positions it well for the next freight upcycle.

In the second quarter of 2025, Old Dominion maintained elite service levels with 99% on-time deliveries and an industry-best cargo claims ratio of just 0.1%. These impressive figures highlight the company's focus on service excellence.

The approximately 35% drop in Old Dominion's stock price in 2025 was due to weaker-than-expected Q2 earnings and revenue. However, forecasts suggest a fair value with potential upside of about 11%, indicating expectations that stock prices could recover as the company navigates these challenges and typical patterns in mature economic cycle phases unfold.

For long-term holders, the mix of quality and value offered by Old Dominion's stock is hard to beat. With its current stock price roughly one-third below its recent high, owning a high-quality S&P 500 dividend stock at a more reasonable price presents an attractive opportunity.

In conclusion, Old Dominion Freight Line's strategic approach, financial discipline, and focus on service excellence make it a company to watch in the upcoming freight upcycle.