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2 Dividend-Paying Transport Equipment & Leasing Stocks to Watch
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The Zacks Transportation - Equipment and Leasing industry currently stands to benefit from the solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.
YTD Price Comparison
Image Source: Zacks Investment Research
The industry has risen 22% so far this year, outperforming the Zacks S&P 500 Composite’s northward movement of 17.9% and the Zacks Transportation sector’s loss of 2.2%.
The buoyancy in the industry is further confirmed by its Zacks Industry Rank #42, which places it in the top 17% of more than 250 Zacks industries.
Given this encouraging backdrop, it would be a wise decision to invest in some dividend-paying companies like Ryder System, Inc. (R - Free Report) and The Greenbrier Companies, Inc. (GBX - Free Report) from the Transportation - Equipment and Leasing industry. These companies have consistently announced dividend hikes, thus highlighting their pro-shareholder stance.
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and act as a hedge against economic or political uncertainty, as well as stock market volatility. At the same time, they offer downside protection with their consistent increase in payouts.
Additionally, these companies have superior fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics.
How to Pick Stocks With Solid Dividend Payouts?
In order to choose some of the best dividend stocks from the industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%. Each stock mentioned below presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ryder: Headquartered in Coral Gables, FL, Ryder operates as a logistics and transportation company worldwide. Currently, R has a market capitalization of $5.98 billion.
Ryder has been making uninterrupted dividend payments for more than 48 years. Highlighting its pro-investor stance, on July 12, 2024, Ryder’s board of directors approved a dividend hike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sept. 20, 2024, to shareholders of record at the close of business on Aug. 19. This marks Ryder’s 192nd consecutive quarterly cash dividend.
Ryder’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. During the first six months of 2024, Ryder paid dividends of $66 million and repurchased shares worth $141 million. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Greenbrier: Headquartered in Lake Oswego, OR, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. Currently, GBX has a market capitalization of $1.50 billion.
Greenbrier pays out a quarterly dividend of 30 cents ($1.20 annualized) per share, which gives it a 2.50% yield at the current stock price. This company’s payout ratio is 30%, with a five-year dividend growth rate of 2.90%. (Check Greenbrier’s dividend history here).
Greenbrier Companies, Inc. (The) Dividend Yield (TTM)
Greenbrier’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Greenbrier paid dividends of $35.8 million (but did not repurchase any shares). In 2023, Greenbrier paid dividends of $36.1 million and repurchased shares worth $56.9 million. During the first half of 2024, Greenbrier rewarded its shareholders through dividends of $19.7 million and repurchased shares worth $1.3 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
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2 Dividend-Paying Transport Equipment & Leasing Stocks to Watch
The Zacks Transportation - Equipment and Leasing industry currently stands to benefit from the solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.
YTD Price Comparison
The industry has risen 22% so far this year, outperforming the Zacks S&P 500 Composite’s northward movement of 17.9% and the Zacks Transportation sector’s loss of 2.2%.
The buoyancy in the industry is further confirmed by its Zacks Industry Rank #42, which places it in the top 17% of more than 250 Zacks industries.
Given this encouraging backdrop, it would be a wise decision to invest in some dividend-paying companies like Ryder System, Inc. (R - Free Report) and The Greenbrier Companies, Inc. (GBX - Free Report) from the Transportation - Equipment and Leasing industry. These companies have consistently announced dividend hikes, thus highlighting their pro-shareholder stance.
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and act as a hedge against economic or political uncertainty, as well as stock market volatility. At the same time, they offer downside protection with their consistent increase in payouts.
Additionally, these companies have superior fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics.
How to Pick Stocks With Solid Dividend Payouts?
In order to choose some of the best dividend stocks from the industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%. Each stock mentioned below presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ryder: Headquartered in Coral Gables, FL, Ryder operates as a logistics and transportation company worldwide. Currently, R has a market capitalization of $5.98 billion.
Ryder has been making uninterrupted dividend payments for more than 48 years. Highlighting its pro-investor stance, on July 12, 2024, Ryder’s board of directors approved a dividend hike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sept. 20, 2024, to shareholders of record at the close of business on Aug. 19. This marks Ryder’s 192nd consecutive quarterly cash dividend.
This company’s payout ratio is 24%, with a five-year dividend growth rate of 5.70%. (Check Ryder’s dividend history here).
Ryder’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. During the first six months of 2024, Ryder paid dividends of $66 million and repurchased shares worth $141 million. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Ryder System, Inc. Dividend Yield (TTM)
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
Greenbrier: Headquartered in Lake Oswego, OR, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. Currently, GBX has a market capitalization of $1.50 billion.
Greenbrier pays out a quarterly dividend of 30 cents ($1.20 annualized) per share, which gives it a 2.50% yield at the current stock price. This company’s payout ratio is 30%, with a five-year dividend growth rate of 2.90%. (Check Greenbrier’s dividend history here).
Greenbrier Companies, Inc. (The) Dividend Yield (TTM)
Greenbrier Companies, Inc. (The) dividend-yield-ttm | Greenbrier Companies, Inc. (The) Quote
Greenbrier’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Greenbrier paid dividends of $35.8 million (but did not repurchase any shares). In 2023, Greenbrier paid dividends of $36.1 million and repurchased shares worth $56.9 million. During the first half of 2024, Greenbrier rewarded its shareholders through dividends of $19.7 million and repurchased shares worth $1.3 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.