TRN’s third-quarter dividend
On September 13, Trinity Industries declared a dividend of $0.13 per share on its common stock for the third quarter. The quarterly cash dividend is payable October 31 to stockholders of record as of October 15. The company has paid a quarterly cash dividend for 218 consecutive quarters. Trinity Industries had 147.71 million common shares outstanding as of September 25, which means the company’s Q3 cash dividend payment would be $19.2 million.
Trinity’s past dividends and growth
Over the last 18 years, Trinity Industries’ quarterly dividend per share has gone up from $0.06 in 2000 to $0.13 in 2018. The last change in its dividend per share was in Q3 2017 when the company raised it to $0.13 per share, up 18.2% from $0.11 per share in Q2 2017.
Trinity Industry’s quarterly dividend declined in Q2 2002 to $0.02 from $0.06 in Q1 2002. TRN’s quarterly dividend started to climb in the fourth quarter of 2005. From that point, the company’s quarterly cash dividend gradually went up. It remained unchanged at $0.04 between Q3 2008 and Q2 2011. After that, TRN has raised its dividend per share consistently every year.
Peer group’s dividend and growth
Competitor American Railcar Industries (ARII) has kept its quarterly cash dividend constant at $0.40 per share since the first quarter of 2017. Freightcar America (RAIL), another competitor, has kept its quarterly cash dividend of $0.09 per share unchanged since the second quarter of 2015.
In Q3 2017, railcar manufacturer (XLI) Wabtec (WAB) increased its quarterly cash dividend by 20% to $0.12 per share from $0.10 per share. Greenbrier Companies (GBX) raised its quarterly cash dividend from $0.23 per share to $0.25 per share in the second quarter of 2018.
In the next part, we’ll go through TRN’s free cash flow and compare its dividend payout with peers.