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Strategies & Market Trends : Dividend investing for retirement
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To: JimisJim who wrote (13635)12/29/2012 11:12:37 AM
From: E_K_S  Read Replies (3) of 34328
 
Here is another opinion on TGH from seeking Alpha.

Textainer Group Holdings: A 5.7% Yield With Significant Upside
December 6, 2012 | 17 comments | about: TGH, includes: BOX, TAL

From the article:
"...Another compelling reason to buy and hold Textainer is for its generous dividend. The company has raised its dividend for 11 straight quarters. The current TTM payout ratio is below 40%. The company is well able to maintain and/or raise the dividend...."

A common misconception about leasing companies is that their profitability is tied to shipping lines. This is untrue. Operating margin for the leasing companies has not been correlated at all with the shipping lines margins.


Revenue for Textainer has also grown at a 21% pace over the last 4 quarters. Revenue growth has kept pace, even when accounting for the increased share count. The current disconnect between Textainer's revenue and current share price is a clear signal that the current share price is far too low.





Full Disclosure: I own shares in BOX and SFL. I also recently sold my CAP and bought TGH. My position in TGH is just a tracking position now and is very small less than 0.01% of the IRA portfolio. I intend to add more shares in the future if the company continues to grow it's dividend.

I suggest anybody interested in TGH to download their presentation and just see how profitable this company has been over the last 10 years:
11/05/12
Company Overview Presentation

EKS
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