As I will show in this analysis, the unique, smart and motivational management-reward scheme is what sets Electro Rent Corporation (ELRC) apart from competitors, as well as other companies, and what also ensures that this company continues to cater perfectly to its shareholders, especially income investors focused on regular and growing dividend streams.
Electro Rent bends over backwards to maximize the shareholder value primarily by paying a high-yielding dividend (currently 4.5% yield), even awarding an extraordinary dividend occasionally as at the end of 2012, and by maintaining a very high payout ratio (currently 85%), in effect returning most of the free cash flow back to its shareholders.
About the company
Electro Rent Corporation and its subsidiaries engage in...
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