For Immediate Release
Chicago, IL – March 18, 2023 – Today, Zacks Equity Research discusses Triton International Limited (
TRTN Quick Quote TRTN - Free Report) , Air Lease Corp. ( AL Quick Quote AL - Free Report) and Ryder System, Inc. ( R Quick Quote R - Free Report) . Industry: Transportation Equipment & Leasing
Transportation - Equipment and Leasing industry appears to have been dented by rising recessionary fears, which may dampen demand for containers. The ongoing banking crisis has added further uncertainty to the already weak economy that is reeling under inflationary woes. High operating costs and supply-chain woes, too, act as major deterrents.
Partly due to these headwinds, the industry has declined 8.6% over the past three months, underperforming the S&P 500 Index's 2.2% appreciation and 4.1% decline of the broader Zacks
Despite the challenges surrounding the industry, some companies, like
Triton International Limited, Air Lease Corp. and Ryder System, Inc., from the Transportation - Equipment and Leasing industry 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.
3 Transport Equipment & Leasing Stocks to Embrace Now
In order to choose some of the best dividend stocks from the aforementioned 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%. Triton: Headquartered in Hamilton, Bermuda, Triton engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal containers and chassis to shipping lines, and freight forwarding companies and manufacturers. Triton carries a Zack Rank #2 (Buy). You can see . the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
Triton pays out a quarterly dividend of 70 cents ($2.80 annualized) per share, which gives it a 3.38% yield at the current stock price. This company's payout ratio is 26%, with a five-year dividend growth rate of 7.12%. (
Check Triton's dividend history here).
We are impressed with Triton's efforts to reward its shareholders through dividends and buybacks. Concurrent with its third-quarter 2022 earnings release, Trition's board of directors increased its quarterly cash dividend from 65 cents per share to 70 cents, indicating a dividend hike of 8%. The company is also active on the buyback front. Triton repurchased 1.7 million shares in the first quarter of 2023.
Air Lease: Headquartered in Los Angeles, CA, Air Lease operates as an aircraft leasing company engaged in the purchase and leasing of commercial jet aircraft to airlines worldwide. AL pays out a quarterly dividend of 20 cents ($0.80 annualized) per share, which gives it a 2.11% yield at the current stock price. This company's payout ratio is 19%, with a five-year dividend growth rate of 13.78%. ( Check AL's dividend history here).
We are impressed by Air Lease's endeavors to reward its shareholders. This Zacks Rank #3 (Hold) company has an impressive dividend payment history. In November 2022, the company's board approved a dividend hike of approximately 8.1% to 20 cents per share (annually: 80 cents). This marked the company's 10th dividend increase since February 2013, when it began distributing dividends. The company is also active on the buyback front.
Steady growth in its fleet is driving Air Lease's top line (up 6% year over year in first-quarter 2023). As of Mar 31, 2023, Air Lease owned 437 aircraft with a net book value of $25.7 billion. The total fleet size at the end of the first quarter was 899 (including the owned fleet of 437).
Ryder: Headquartered in Miami, FL, it operates as a logistics and transportation company worldwide. Ryder pays out a quarterly dividend of 62 cents ($2.48 annualized) per share, which gives it a 3.13% yield at the current stock price. This company's payout ratio is 16%, with a five-year dividend growth rate of 3.07%. ( Check Ryder's dividend history here).
We are impressed with Ryder's consistent efforts to reward its shareholders through dividends and share repurchases. In July 2021, the company announced a 3.6% hike in its quarterly dividend to 58 cents per share. In July 2022, Ryder announced a further 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48). In 2022, Ryder paid dividends worth $123 million and repurchased shares worth $557 million. During first-quarter 2023, Ryder paid dividends worth $35 million and repurchased shares worth $45 million. Ryder carries a Zacks Rank #3.
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