Last week, Morgan Stanley revealed a dividend boost, along with five other companies unveiling comparable plans.
Dividends
July 5, 2023
The Greenbrier Companies, Inc. (GBX), a global supplier of equipment and services to the freight transportation markets, recently announced its financial results for the third quarter of fiscal year 2023, which ended on May 31, 2023. The company reported strong performance and achieved several milestones during the quarter. They received new railcar orders worth $650 million for 4,600 units and delivered 6,600 units. Additionally, they received orders for 7,900 units valued at $975 million after the quarter ended, resulting in a new railcar backlog of 23,400 units with an estimated value of $2.9 billion.
Greenbrier's liquidity remained strong at $665 million, including $321 million in cash and $344 million of available borrowing capacity. The company reported net earnings of $27 million, with net earnings attributable to Greenbrier amounting to $21 million, or $0.64 per diluted share. Adjusted net earnings attributable to Greenbrier were $34 million or $1.02 per diluted share. Furthermore, Greenbrier repurchased 1.2 million shares of stock for $32 million and increased its quarterly dividend by 11% to $0.30 per share.
This dividend increase marks the company's 37th consecutive quarterly dividend.
The increase in Greenbrier's dividend can be attributed to the company's continued operating momentum and strong commercial activity. During the Investor Day held in April 2023, Greenbrier outlined its long-term financial targets, including substantial growth in recurring revenue, improved gross margin, and increased return on invested capital by fiscal year 2026. The positive results of the third quarter, along with a strong railcar backlog and revenue visibility, provided the confidence to increase the dividend. The company also mentioned its strategic plan, which includes a significant lease fleet investment to maximize financial performance during periods of high market demand and stabilize performance during less favorable demand periods.
United Security Bancshares, the parent company of United Security Bank, recently announced an increase in its dividend payout. On June 27, 2023, the Board of Directors declared a regular quarterly cash dividend of $0.12 per share on the Company's common stock. This dividend represents an increase from the previous payout and reflects the company's commitment to rewarding its shareholders.
Wiley, a global knowledge company renowned for its expertise in research, publishing, and knowledge solutions, recently made an exciting announcement regarding actions taken to maximize shareholder value. The company's Board of Directors has declared a quarterly cash dividend of $0.3500 per share on its Class A and Class B Common Stock. This dividend is set to be paid out on July 20, 2023, to shareholders who are on record as of July 6, 2023.
Notably, this quarterly dividend increase marks a significant milestone for Wiley, as it represents the 30th consecutive annual increase. With the new dividend rate, shareholders can now expect an annual dividend of $1.40 per share, a slight increase from the previous year's $1.39 per share in Fiscal 2023. Such consistent dividend growth demonstrates Wiley's commitment to rewarding its shareholders and reflects the company's strong financial performance.
Worthington Industries, Inc. (WOR) recently announced an increase in its quarterly dividend, signaling the company's continued commitment to delivering value to its shareholders. The board of directors approved a dividend of $0.32 per share, representing a 3% increase from the previous quarter. Shareholders of record as of September 15, 2023, will receive the dividend payment on September 29, 2023.
Worthington Industries has a long-standing tradition of rewarding its shareholders through regular dividend payments, dating back to its inception as a public company in 1968. In fact, this dividend increase marks the 13th consecutive year that the company has raised its dividend, demonstrating its consistent financial strength and confidence in its future prospects.
BNY Mellon, a leading financial services company, recently announced its plan to raise its quarterly cash dividend on common shares by 14%, increasing it from $0.37 to $0.42 per share. This decision is pending approval from the company's Board of Directors and is expected to be implemented in the third quarter of 2023.
The increase in dividend follows the release of the Federal Reserve's 2023 bank stress test results on June 28, 2023. BNY Mellon demonstrated the strength and resilience of its business model and capital position, receiving notification from the Federal Reserve that its preliminary Stress Capital Buffer (SCB) requirement would remain at 2.5%, equivalent to the regulatory floor. This SCB is set to take effect from October 1, 2023, to September 30, 2024.
Morgan Stanley, a leading financial services firm, recently announced a dividend increase for its shareholders. The company will raise its quarterly common stock dividend from $0.775 per share to $0.85 per share, effective starting in the third quarter of 2023. This decision comes as the firm's Board of Directors reauthorized a multi-year common equity share repurchase program of up to $20 billion, which will be exercised over time at prices determined by the firm, taking into account market conditions and the company's capital position.
James P. Gorman, Chairman and Chief Executive Officer of Morgan Stanley, emphasized the firm's strong performance and resilience, stating that the Federal Reserve's stress test results validate their transformed business model. He also highlighted the commitment to returning capital to shareholders, with the dividend increase of 7.5 cents per share. Gorman further ewxpressed confidence in the firm's franchise, particularly in the Wealth and Investment Management sector, and its robust capital position.
Notably, on June 28, 2023, the Board of Governors of the Federal Reserve System released the CCAR 2023 results, which determined that Morgan Stanley would be subject to a Stress Capital Buffer (SCB) of 5.4% from October 1, 2023, to September 30, 2024. Combined with other regulatory capital measures, this SCB translates into an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 12.9%, indicating a strong capital foundation for the firm. As of March 31, 2023, the company's U.S. Basel III Standardized Approach CET1 ratio stood at 15.1%.
All data was sourced from LevelFields AI
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