3 Dividend-Paying Transport Equipment & Leasing Stocks to Watch
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The Zacks Transportation – Equipment and Leasing industry is currentlynavigating a challenging macroeconomic environment. The industry grapples with challenges due to persistent inflation, tariff-related tensions and lingering supply-chain disruptions. Geopolitical woes represent further challenges.
Partly due to these headwinds, the industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Transportation sector over the past three months. Over this period, the industry has gained 1.8% compared with the S&P 500 Index’s northward movement of 10.1%. The broader sector has increased 3.3%.
Zacks Investment Research
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Despite the challenging macroeconomic conditions, industry players such as The Greenbrier Companies, Inc. (GBX), Ryder Corporation (R) and Air Lease Corporation (AL) stand out for their solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility, as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
Investing in dividend stocks is a prudent strategy that offers a dual advantage — steady income and a cushion against market volatility. It’s no wonder investors actively seek companies with a consistent and growing dividend history. These stocks provide a reliable income stream, acting as a buffer during market downturns and contributing to overall portfolio stability.
To guide investors interested in the railroad industry, we came up with certain parameters using the Zacks Stocks Screener. We shortlisted transportation stocks based on the following:
a) A dividend payout ratio of less than 60% (the dividend payout ratio — dividends paid/net income — gives the proportion of earnings paid out as dividends to shareholders. A payout ratio below 60 looks quite sustainable).
b) A dividend yield of greater than 1% (dividend yield denotes the percentage of a company’s share price that it shells out as dividends annually).
The selected stocks have exhibited dividend growth in the past five years, apart from currently carrying a Zacks Rank #3 (Hold) or better.
Greenbrier: Headquartered in Lake Oswego, OR, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. Currently, GBX has a market capitalization of $1.50 billion.
Greenbrier pays out a quarterly dividend of 32 cents ($1.28 annualized) per share, which gives it a 2.72% yield at the current stock price. This company’s payout ratio is 18%, with a five-year dividend growth rate of 3.47%. (Check Greenbrier’s dividend history here).
Greenbrier Companies, Inc. (The) Dividend Yield (TTM)
Greenbrier Companies, Inc. (The) dividend-yield-ttm | Greenbrier Companies, Inc. (The) Quote
Greenbrier presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Greenbrier’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Greenbrier paid dividends of $35.8 million (but did not repurchase any shares). In 2023, Greenbrier paid dividends of $36.1 million and repurchased shares worth $56.9 million. In 2024, Greenbrier paid dividends of $38.4 million and repurchased shares worth $1.3 million. During the first nine months of 2025, Greenbrier rewarded its shareholders through dividends of $29.7 million and repurchased shares worth $21.8 million. Such shareholder-friendly moves instill investor confidence and positively impact the company’s bottom line.
Ryder: Headquartered in Coral Gables, FL, Ryder operates as a logistics and transportation company worldwide. Currently, R has a market capitalization of $7.64 billion.
Ryder pays out a quarterly dividend of 91 cents ($3.64 annualized) per share, which gives it a 1.94% yield at the current stock price. This company’s payout ratio is 26%, with a five-year dividend growth rate of 9.47%. (Check Ryder’s dividend history here). Ryder presently carries a Zacks Rank #3 (Hold).
Ryder System, Inc. Dividend Yield (TTM)
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
We are impressed with Ryder’s consistent efforts to reward its shareholders through dividends and share repurchases. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. In 2024, Ryder returned $456 million in cash to shareholders through share repurchases and dividends. During the first half of 2025, Ryder paid dividends of $71 million and repurchased shares worth $261 million. Such shareholder-friendly moves instill investor confidence and positively impact the company’s bottom line.
Air Lease: Headquartered in Los Angeles, CA, Air Lease operates as an aircraft leasing company engaged in purchasing and leasing commercial jet aircraft to airlines worldwide. With a globally diversified customer base of 116 airlines in 58 different countries, more than 95% of AL’s business revenues originate from airlines located outside of the United States. Steady growth in the fleet, profits earned from aircraft sales and higher end-of-lease revenues contribute to AL’s top-line growth. Currently, AL has a market capitalization of $6.76 billion.
AL pays out a quarterly dividend of 22 cents (88 cents annualized) per share, which gives it a 1.45% yield at the current stock price. This company’s payout ratio is 17%, with a five-year dividend growth rate of 8.34%. (Check Air Lease’s dividend history here). Air Lease presently carries a Zacks Rank #3.
Air Lease Corporation Dividend Yield (TTM)
Air Lease Corporation dividend-yield-ttm | Air Lease Corporation Quote
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