Although container lessorTextainer Group Holdings (
) 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
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
The current dividend payout is about 45% of estimated earnings
The Commercial Services-Leasing group is highly rated. The
group was No. 14 out of 197 industry groups in Tuesday's IBD.