An In-Depth Look at Air Lease Corp's Dividend Sustainability and Growth
Air Lease Corp (AL, Financial) recently announced a dividend of $0.21 per share, payable on 2024-07-08, with the ex-dividend date set for 2024-06-04. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Air Lease Corp's dividend performance and assess its sustainability.
What Does Air Lease Corp Do?
Air Lease Corp is an aircraft leasing company based in the United States. However, it derives its revenue from the Asia region. Its business involves purchasing aircraft from renowned manufacturers such as The Boeing Company (Boeing) and Airbus S.A.S and leasing them to airline companies across the world. Its suite of aircraft entails single-aisle narrow-bodied jets and twin-aisle wide-bodied aircraft. The company earns from revenue originates from the renting of flight equipment. Geographically it operates in Asia Pacific, Europe, The Middle East and Africa, Central America, South America and Mexico and U.S. and Canada.
A Glimpse at Air Lease Corp's Dividend History
Air Lease Corp has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a quarterly basis. Air Lease Corp has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 11 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Air Lease Corp's Dividend Yield and Growth
As of today, Air Lease Corp currently has a 12-month trailing dividend yield of 1.73% and a 12-month forward dividend yield of 1.78%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Air Lease Corp's annual dividend growth rate was 9.90%. Extended to a five-year horizon, this rate increased to 12.90% per year. And over the past decade, Air Lease Corp's annual dividends per share growth rate stands at an impressive 24.20%.
Based on Air Lease Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Air Lease Corp stock as of today is approximately 3.17%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Air Lease Corp's dividend payout ratio is 0.18.
Air Lease Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Air Lease Corp's profitability 8 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Air Lease Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Air Lease Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Air Lease Corp's revenue has increased by approximately 10.90% per year on average, a rate that outperforms approximately 59.59% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Air Lease Corp's earnings increased by approximately 1.90% per year on average, a rate that outperforms approximately 31.53% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -3.40%, which outperforms approximately 20.58% of global competitors.
Next Steps
In conclusion, Air Lease Corp's strategic positioning in the aircraft leasing industry, combined with a solid track record of dividend payments and growth, suggests a promising outlook for dividend sustainability. The company's healthy payout ratio and robust profitability further bolster confidence in its ability to maintain and potentially increase dividend distributions in the future. Investors looking for stable dividend-paying stocks might find Air Lease Corp an attractive option. For more detailed analysis and stock screening, GuruFocus Premium users can explore options using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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