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Trinity (TRN) Rewards Investors With Dividend Hike, Buyback

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In a shareholder-friendly move, Trinity Industries, Inc. (TRN - Free Report) announced a hike in its dividend payout. TRN’s board of directors has announced a dividend hike of 13%, thereby raising its quarterly cash dividend from 23 cents per share to 26 cents. The raised dividend, reflecting Trinity’s 235th consecutively paid dividend, will be paid out on Jan 31, 2023, to all its shareholders of record as of Jan 13, 2023. The move reflects TRN’s intention to utilize free cash to enhance its shareholders’ returns.

Trinity Industries, Inc. Dividend Yield (TTM)

 

Trinity Industries, Inc. Dividend Yield (TTM)

Trinity Industries, Inc. dividend-yield-ttm | Trinity Industries, Inc. Quote

 

Additionally, this Zacks Rank #3 (Hold) stock announced its new share repurchase authorization. TRN’s board of directors has approved a new share repurchase authorization of $250 million shares, effective Dec 9, 2022, with no expiration.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Trinity has been consistently making efforts to reward its shareholders through dividends and share buybacks which are encouraging. During the first nine months of 2022, TRN rewarded its shareholders through a combination of cash dividends ($58.3 million) and share repurchases ($36.8 million). The company also returned $895 million to shareholders through $88 million in dividends and $807 million in share repurchases during 2021.

Jean Savage, Trinity’s chief executive officer and president, stated, "Our consistency in paying a dividend combined with our motivation to continue to buy back shares reflects Trinity’s ongoing commitment to return capital to shareholders.” She further added, "We continue to evaluate the best use of capital and believe our financial performance gives us the ability to be disciplined in capital allocation to improve shareholder returns."

Notably, the relaxation of COVID-19 travel restrictions and the reopening of the global economy has turned out to be a boon for companies in the Zacks Transportation sector. As a result, multiple transportation stocks are rewarding their shareholders with dividend payouts or share buyback programs.

To name a few, Landstar System, Inc.’s (LSTR - Free Report) board of directors increased its share purchase program to 3,000,000. This increase reflects a new authorization to purchase 1,900,826 LSTR shares, apart from the existing authorization to purchase 1,099,174 shares. LSTR’s board also announced a special one-time cash dividend of $2.00 per share, payable on Jan 20, 2023, to shareholders of record as of Jan 6, 2023.

Landstar System, Inc. Dividend Yield (TTM)

 

Landstar System, Inc. Dividend Yield (TTM)

Landstar System, Inc. dividend-yield-ttm | Landstar System, Inc. Quote

 

In November, Air Transport Services Group’s (ATSG - Free Report) board of directors has approved a new share repurchase authorization of $150 million shares, offsetting its previously exhausted share buybacks. ATSG resumed share repurchases during October 2022, acquiring 1.6 million, or almost 2% of its issued and outstanding shares in open-market and private transactions. Prior to this, ATSG was restricted to buyback shares under provisions of a federal grant program to offset pandemic effects on employment for passenger airline companies.

C.H. Robinson Worldwide, Inc.’s (CHRW - Free Report) board of directors has approved a dividend hike of 11%, thereby raising its quarterly cash dividend from 55 cents per share to 61 cents. The raised dividend will be paid out on Jan 3, 2023, to all its shareholders of record as of Dec 2, 2022.

 

We believe such shareholder-friendly initiatives boost investor confidence and positively impact the company’s bottom line.


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