GATX Corporation Announces Quarterly Dividend Increase

Rhea-AI Summary

GATX Corporation (NYSE: GATX) has declared a quarterly dividend of $0.58 per common share, payable Mar. 31, 2024, to shareholders of record on Mar. 3, 2024. This represents a 5.5% increase from the prior year’s dividend. GATX has paid quarterly dividends without interruption since 1919. The company has invested $9.7 billion in its business in the past decade while also returning over $1.5 billion to shareholders through dividends and share repurchases.

Insights

Financial Analyst

The announcement by GATX Corporation of an increased quarterly dividend is a significant indicator of the company's financial health and strategic priorities. A 5.5% increase in dividend payout suggests that GATX is confident in its ability to generate stable and growing cash flows, which is essential for investors seeking income through dividends. The company's track record of consistent dividend payments since 1919 underscores a commitment to shareholder returns, which can be an attractive point for value-oriented investors.

Moreover, the historical investment of $9.7 billion into the business juxtaposed with the return of over $1.5 billion to shareholders through dividends and share repurchases in the past decade reflects a balanced approach to capital allocation. This strategy often appeals to investors who favor companies that reinvest in their operations while also sharing profits with shareholders.

It is also worth noting that the dividend policy of a company is closely watched by the market as it provides insights into the board's outlook on future earnings and business stability. In this case, the increase aligns with a positive long-term outlook, potentially influencing investor sentiment and stock valuation.

Market Research Analyst

GATX's core business in leasing transportation assets such as railcars, aircraft spare engines and tank containers positions it within sectors that are sensitive to macroeconomic conditions. The company's performance and by extension its ability to pay dividends, can be impacted by factors such as global trade volumes, commodity prices and industrial production. The announcement of a dividend increase could signal underlying strength in these sectors and a favorable competitive position for GATX.

Additionally, the reference to the company's mission to provide unparalleled service and sustainable transportation solutions may resonate with a growing segment of investors who prioritize Environmental, Social and Governance (ESG) factors. The emphasis on safety and sustainability in operations could enhance GATX's reputation and investor appeal in an increasingly ESG-focused market.

CHICAGO--(BUSINESS WIRE)-- The board of directors of GATX Corporation (NYSE: GATX) today declared a quarterly dividend of $0.58 per common share, payable Mar. 31, 2024, to shareholders of record on Mar. 3, 2024. GATX has paid quarterly dividends without interruption since 1919, and the dividend amount announced today represents a 5.5% increase from the prior year’s dividend.

“2024 marks our 106^th consecutive year of paying a dividend, a track record few companies can match,” said Robert C. Lyons, president and chief executive officer of GATX. “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.”

COMPANY DESCRIPTION

At GATX Corporation (NYSE: GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.

AVAILABILITY OF INFORMATION ON GATX'S WEBSITE

Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the “Investors” tab.

FORWARD-LOOKING STATEMENTS

Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2022, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:

a significant decline in customer demand for our transportation assets or services, including as a result of: prolonged inflation and high interest rates weak macroeconomic conditions and world trade policies weak market conditions in our customers' businesses adverse changes in the price of, or demand for, commodities changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages changes in, or disruptions to, supply chains availability of pipelines, trucks, and other alternative modes of transportation changes in conditions affecting the aviation industry, including global conflicts, geographic exposure and customer concentrations customers' desire to buy, rather than lease, our transportation assets other operational or commercial needs or decisions of our customers inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand competitive factors in our primary markets, including competitors with significantly lower costs of capital higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure financial and operational risks associated with long-term purchase commitments for transportation assets reduced opportunities to generate asset remarketing income inability to successfully consummate and manage ongoing acquisition and divestiture activities reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses potential obsolescence of our assets

risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees inability to attract, retain, and motivate qualified personnel, including key management personnel inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets changes in, or failure to comply with, laws, rules, and regulations environmental liabilities and remediation costs operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters U.S. and global political conditions and the impact of increased geopolitical tension and wars, including the ongoing war between Russia and Ukraine and resulting sanctions and countermeasures, on domestic and global economic conditions in general, including supply chain challenges and disruptions prolonged inflation or deflation fluctuations in foreign exchange rates deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs the emergence of new variants of COVID-19 or the occurrence of another widespread health crisis and the impact of measures taken in response inability to obtain cost-effective insurance changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans inadequate allowances to cover credit losses in our portfolio asset impairment charges we may be required to recognize inability to maintain effective internal control over financial reporting and disclosure controls and procedures

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126921324/en/

GATX Corporation

Shari Hellerman

Senior Director

Investor Relations, ESG, and External Communications

312-621-4285

shari.hellerman@gatx.com

Source: GATX Corporation

FAQ

What is the dividend amount declared by GATX Corporation (NYSE: GATX)?

The quarterly dividend declared by GATX Corporation (NYSE: GATX) is $0.58 per common share.

When is the dividend payable to shareholders of GATX Corporation (NYSE: GATX)?

The dividend is payable on Mar. 31, 2024, to shareholders of record on Mar. 3, 2024.

How long has GATX Corporation (NYSE: GATX) been paying quarterly dividends?

GATX Corporation (NYSE: GATX) has paid quarterly dividends without interruption since 1919.

What is the percentage increase in the dividend amount from the prior year for GATX Corporation (NYSE: GATX)?

The dividend amount announced represents a 5.5% increase from the prior year’s dividend.

What is the total investment made by GATX Corporation (NYSE: GATX) in its business in the past decade?

GATX Corporation (NYSE: GATX) has invested $9.7 billion in its business in the past decade.