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Trinity Rewards Investors With 12% Dividend Hike, Stock Up

Zacks Equity Research

In a shareholder-friendly measure, Trinity Industries, Inc. TRN announced a 12% dividend hike, following which shares of the company rose 3.4% at the close of business on Dec 6. The move is indicative of the company’s commitment to create value for shareholders and also underlines its confidence in business growth.

Trinity raised its quarterly dividend to 19 cents per share (or 76 cents annually) on its 1 cent par value common stock. The amount will be paid out on Jan 31, 2020 to its shareholders of record as of Jan 15. This marks the company’s 223rd consecutive dividend payout. The dividend yield based on the new payout and Dec 6’s closing price is 3.6%.

In March 2019, the company increased its quarterly dividend by 31% to 17 cents per share. Trinity is also active on the buyback front. As of Sep 30, 2019, it repurchased shares worth $233.9 million. The company has returned $294.7 million to shareholders through dividends and buybacks in the first nine months of 2019.

Trinity Industries, Inc. Price

 

Trinity Industries, Inc. Price

Trinity Industries, Inc. price | Trinity Industries, Inc. Quote


Investors always prefer an income-generating stock. Hence a high dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on.

Zacks Rank & Key Picks

Trinity carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX, Kansas City Southern KSU and Allegiant Travel Company ALGT. While Allegiant sports a Zacks Rank #1 (Strong Buy), Kansas City Southern and GATX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of GATX, Kansas City Southern and Allegiant have rallied more than 15%, 59% and 70%, respectively, so far this year.

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