3 Dividend-Paying Transport Equipment & Leasing Stocks to Watch

Industry Overview - The Zacks Transportation - Equipment and Leasing industry is facing a challenging macroeconomic environment characterized by persistent inflation, tariff-related tensions, and supply-chain disruptions, along with geopolitical issues [1] - The industry has underperformed compared to the Zacks S&P 500 Composite and the broader Zacks Transportation sector, gaining only 1.8% over the past three months, while the S&P 500 increased by 10.1% and the broader sector rose by 3.3% [2] Company Highlights - Companies like The Greenbrier Companies, Ryder Corporation, and Air Lease Corporation are noted for their solid investor-friendly initiatives, including consistent dividend payouts and share buybacks, indicating strong financial health [3][7] - Dividend growth stocks are typically mature companies that provide downside protection against market volatility, supported by strong fundamentals such as sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [4] Stock Selection Criteria - A dividend payout ratio of less than 60% is considered sustainable, indicating a healthy balance between earnings and dividends [8] - A dividend yield greater than 1% is preferred, with selected stocks showing dividend growth over the past five years and carrying a Zacks Rank of 3 (Hold) or better [9] Company Specifics Greenbrier Companies (GBX) - Headquartered in Lake Oswego, OR, Greenbrier has a market capitalization of $1.50 billion and pays a quarterly dividend of $0.32, yielding 2.72% [10] - The company's payout ratio is 18%, with a five-year dividend growth rate of 3.47% [10] - In 2022, Greenbrier paid $35.8 million in dividends and repurchased no shares; in 2023, it paid $36.1 million in dividends and repurchased $56.9 million; in 2024, dividends were $38.4 million with $1.3 million in share repurchases [12] Ryder Corporation (R) - Based in Coral Gables, FL, Ryder has a market capitalization of $7.64 billion and pays a quarterly dividend of $0.91, yielding 1.94% [13] - The payout ratio is 26%, with a five-year dividend growth rate of 9.47% [13] - Ryder returned $123 million in dividends and $557 million in share repurchases in 2022; in 2023, it paid $128 million in dividends and repurchased $337 million; in 2024, it returned $456 million to shareholders [14] Air Lease Corporation (AL) - Headquartered in Los Angeles, CA, Air Lease has a market capitalization of $6.76 billion and pays a quarterly dividend of $0.22, yielding 1.45% [15][16] - The payout ratio is 17%, with a five-year dividend growth rate of 8.34% [16]