Few Stocks Can Match Textainer In Dividend Increases


Although container lessorTextainer Group Holdings ( TGH ) has been operating since 1979, the company's initial public offering was launched in October 2007.

During its run as a public company, Textainer has increased its quarterly dividend 15 times, including five time since early 2012. Few companies in the stock market today can match that string of increases.

The quarterly payout is 45 cents a share, which works out to a current annualized yield of about 4.3%.

Textainer Group says it is the world's largest lessor of intermodal containers based on fleet size. The company owns about 60% of its fleet. The management of containers for other companies accounts for the balance.

The company also is a leading supplier of leased containers to the U.S. military.

Textainer is firmly committed to paying dividends. The company noted in its 20-F report that its dividend policy reflects the company's judgment that shareholders are better served if the company pays a dividend "in excess of our expected cash needs ... rather than retaining such excess cash."

The dividend is usually paid out of cash flow from operations. The company, however, will tap short-term borrowings to pay dividends if seasonal factors would prevent a payout from cash flow.

So, income investors needn't worry too much about a temporary factor interrupting the payout.

Annual earnings grew 82% in 2010, then 43% and last year 8%. The Street expects EPS to rise only 4% this year but 11% in 2014.

The current dividend payout is about 45% of estimated earnings for 2013.

The Commercial Services-Leasing group is highly rated. The group was No. 14 out of 197 industry groups in Tuesday's IBD.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas

Referenced Stocks: TGH

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos




Most Active by Volume

  • $47.87 ▲ 10.45%
  • $9.99 ▲ 6.28%
  • $7.92 ▲ 11.24%
  • $59.64 ▲ 0.69%
  • $130.28 ▲ 0.47%
  • $34.01 ▼ 0.64%
  • $11.99 ▼ 8.75%
  • $15.64 ▼ 0.32%
As of 4/24/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com