Did you know that the first four dividends this company paid were $0.50 each, back when the share price was in the $20s? Then they cut it to $0.20 near the bottom of the market in 2009.
Were lease rates that much better back then, or was the business model different? Now they are retaining cash flow and selling off older AC to fund the equity needed to make new purchases with secured debt. Perhaps at the IPO the plan was to sell equity and give more of the FCF to share holders. Will the market ever assign a value above book, so that management could justify doing a secondary?
Jeddiemack- You may be right, the company may raise the dividend another two pennies. I would prefer that they raised it to thirty cents a quarter, loudly proclaiming to Mr Market that this company is confident that they can generate sufficient income to both grow the business and handsomely reward shareholders.
Jeddie- If I recall correctly, weren't you around when this company as well as the other leasers were trading in the three dollar range back in 08?
Sentiment: Strong Buy