Dividend Focus Stock: This Vehicle Parts Manufacturer Is Propelling Dividends and Buybacks
Our current focus shines on Allison Transmission, a quality industrial with a history of returning cash to shareholders.
In this edition of the Dividend Informer, our analysts introduce a new dividend payer to our list of coverage. A recent acquisition looks to double its revenues and create opportunities for dividend growth and share buybacks.
Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles.
The company has historically been generous in returning cash to shareholders via a combination of dividends and share repurchases, and we expect this will continue. The current yield is a modest 0.9%, but the company’s new expanded global presence makes the company’s prospects look quite promising.
It is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions used in on-highway trucks, buses, motorhomes, off-highway vehicles and equipment, and defense vehicles. The company possesses a strong brand due to transmissions that are extremely durable and reliable.
