GATX Rewards Shareholders With Dividend Increase of 5.5%
In a shareholder-friendly move, GATX Corporation GATX announced a hike in its dividend payout. GATX’s board of directors has announced a dividend hike of almost 5.5%, thereby raising its quarterly cash dividend from 55 cents per share to 58 cents. The raised dividend will be paid out on Mar 31, 2024, to all its shareholders of record as of Mar 1, 2024. The move reflects GATX’s intention to utilize free cash to enhance its shareholders’ returns.
GATX, which has been paying regular dividends since 1919, holds an impressive record with respect to dividends. Notably, 2024 marks the 106th consecutive year of GATX paying out dividends.
GATX Corporation Dividend Yield (TTM)
GATX Corporation dividend-yield-ttm | GATX Corporation Quote
Robert C. Lyons, president and chief executive officer of GATX, stated, "In the past decade alone, GATX has invested $9.7 billion in our business while also returning over $1.5 billion to shareholders through dividends and share repurchases. This dividend increase reflects the board’s positive view of GATX’s long-term outlook, the strength and quality of our cash flows, and the Company’s ongoing commitment to shareholders."
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like GATX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
GATX management’s decision to increase its quarterly dividend payout reflects the company’s commitment to boosting shareholder value apart from underlining confidence in its business. We believe such shareholder-friendly initiatives boost investor confidence and positively impact thisZacks Rank #2 (Buy) stock bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX is not the only player from theZacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few, on Jan 23, 2024, Canadian National Railway Company’s (CNI) board of directors approved a 7% hike in the 2024 dividend on the company's common shares outstanding and the repurchase of its shares as per a new normal course issuer bid (Bid).
Concurrent with the fourth quarter of 2023 earnings release, on Jan 19, 2024, J.B. Hunt Transport Services, Inc.’s (JBHT) board of directors approved a dividend hike of 2%, thereby raising its quarterly cash dividend from 42 cents per share to 43 cents. The raised dividend will be paid out on Feb 23, 2024, to all its shareholders of record as of Feb 9, 2024.
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Canadian National Railway Company (CNI) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
GATX Corporation (GATX) : Free Stock Analysis Report
