Fortress Transportation and Infrastructure Investors (NYSE:FTAI) Will Pay A Dividend Of US$0.33
Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) has announced that it will pay a dividend of US$0.33 per share on the 30th of August. The dividend yield will be 4.6% based on this payment which is still above the industry average.
View our latest analysis for Fortress Transportation and Infrastructure Investors
Fortress Transportation and Infrastructure Investors Might Find It Hard To Continue The Dividend
A big dividend yield for a few years doesn't mean much if it can't be sustained. Even in the absence of profits, Fortress Transportation and Infrastructure Investors is paying a dividend. Along with this, it is also not generating free cash flows, which raises concerns about the sustainability of the dividend.
Looking forward, earnings per share could 0.03% over the next year if the trend of the last few years can't be broken. This means the company will be unprofitable and managers could face the tough choice between continuing to pay the dividend or taking pressure off the balance sheet.
Fortress Transportation and Infrastructure Investors Is Still Building Its Track Record
Fortress Transportation and Infrastructure Investors' dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The last annual payment of US$1.32 was flat on the first annual payment 6 years ago. We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.
Dividend Growth May Be Hard To Achieve
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Fortress Transportation and Infrastructure Investors hasn't seen much change in its earnings per share over the last five years.
We're Not Big Fans Of Fortress Transportation and Infrastructure Investors' Dividend
In summary, while it is good to see that the dividend hasn't been cut, we think that at current levels the payment isn't particularly sustainable. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Overall, this doesn't get us very excited from an income standpoint.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Just as an example, we've come across 2 warning signs for Fortress Transportation and Infrastructure Investors you should be aware of, and 1 of them is concerning. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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