In trading on Tuesday, shares of Textainer Group Holdings Ltd (NYSE:TGH) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.32), with the stock changing hands as low as $26.25 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2011 and each share was worth $80.78 on that date, a mere $2.51 or 3.2% increase over eleven years. But now consider that you collected a whopping $9.69 per share in dividends over the same period, increasing your return to 20.27%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.7%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Textainer Group Holdings Ltd (NYSE:TGH) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Textainer Group Holdings Ltd, looking at the history chart for TGH below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.
TGH Dividend History
* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.
TGH operates in the Shipping sector, among companies like Danaos Corp (DAC), and Frontline Ltd (NYSE:FRO) trading lower by about 6.2%. Below is a three month price history chart comparing the stock performance of TGH, versus FRO.
The ETF Channel Flexible Growth Investment Portfolio is designed to seek growth for investors —
anywhere and everywhere. The key to the program is our portfolio strategy allows us complete flexibility in terms of asset
allocation as there are no predetermined guidelines as to the level of stocks, bonds, cash, regions, countries, sectors,
commodities, or even asset classes in the portfolio! In short, this is a completely flexible portfolio designed to follow
the performance trail wherever it leads us.
This Article's Word Cloud:BelowDividendsGroupHoldingsNYSEPortfolioRussellTextaineraboutabovealwaysamountsannualassetbackchartcompaniescompanycomparisonconsiderdatadesigneddividenddividendseachescapefillColorfollowgridColorhavehistoryimportantinvestorsmereoverperformanceperiodportfolioreturnsharesharesstockthattotaltradingwhetherwithwouldyearsyield
Nothing in Dividend Channel is intended to be investment advice, nor does it represent the opinion of, counsel
from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you
agree to the following Full Disclaimer & Terms of Service. Video widget and dividend videos powered by Market News Video. Quote data delayed at least 20
minutes; data powered by Ticker Technologies, and Mergent. Contact Dividend Channel; Meet Our Editorial Staff.