Back to top

Image: Bigstock

GATX Corp (GATX) Cheers Investors With 4% Dividend Hike

Read MoreHide Full Article

Considering improved conditions in the United States on higher economic activities and increased vaccination programs, GATX Corporation (GATX - Free Report) announced a 4% hike in its quarterly dividend payout to 52 cents per share (annualized $2.08). The first installment of the revised dividend will be paid out on Mar 31, 2022, to shareholders as of Feb 22. Notably, 2022 marks the 104th consecutive year of GATX paying out dividends.

GATX Corp paid out dividends when the coronavirus-led situation was worse in the United States. As proof of its shareholder-friendly attitude, the company raised its quarterly dividend by 4.2% to 50 cents per share in January 2021.

The hiked dividend highlights GATX  Corp's commitment to boost shareholders’ value and underscores its strong financial condition and bright prospects.

Zacks Rank & Other Stocks to Consider

GATX Corp currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Zacks Transportation sector can also consider stocks like J.B. Hunt Transport Services (JBHT - Free Report) , FedEx Corporation (FDX - Free Report) and Schneider National (SNDR - Free Report) .

The long-term expected earnings per share (three to five years) growth rate for J.B. Hunt is pegged at 15%. JBHT is benefiting from strong performances across all its segments. The Dedicated Contract Services (DCS) unit is being driven by fleet-productivity improvement and a rise in average revenue-producing trucks. The Integrated Capacity Solutions (ICS) unit is gaining from a favorable customer freight mix and higher contractual and spot rates.

JBHT’s measures to reward its shareholders are encouraging. Driven by the tailwinds, the stock has increased 40.2% in the past year. J.B. Hunt currently sports a Zacks Rank #1.

The long-term expected earnings per share (three to five years) growth rate for FedEx is pegged at 12%. FDX is benefitting from a surge in e-commerce demand amid the pandemic.

FDX exited first-quarter fiscal 2022 with cash and equivalents of $6,853 million, higher than its current debt of $125 million. Driven by the tailwinds, the stock has moved up 2.3% in the past year. FedEx currently carries a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for Schneider is pegged at 20.7%. SNDR benefits from strong performance in the Intermodal and Logistics units.

SNDR’s third-quarter cash balance is also encouraging. Driven by the tailwinds, the stock has moved up 16.1% in the past year. Schneider currently sports a Zacks Rank #1.
 

Published in