Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Textainer Group Holdings: A Leveraged Play On Economic Growth With A Good Yield

Textainer Group Holdings (NYSE:TGH) is the world's largest container lessor. As of May 2013, Textainer controlled 18% of the global container leasing market with over 2.8M TEU of capacity. 48.5% of Textainer's stock is owned by Halco Holdings, a 100% owned subsidiary of South Africa based Trencor. Since 2010, Textainer has been a dividend growth machine with 13 consecutive quarters of dividend increases. Textainer currently offers a $0.46 per share dividend and yields about 4.90%.

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Textainer's business model is rather simple -- It buys containers and then leases them out on long-term leases. Textainer depreciates these containers as they age and eventually sells them in the secondary market for about 40% to 60% of their...

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