U-Haul announces modest dividend for non-voting stock

Published 15/08/2024, 21:50
U-Haul announces modest dividend for non-voting stock

RENO, Nev. - U-Haul Holding Company, which operates under the ticker NYSE:UHAL, has declared a quarterly cash dividend for its Series N Non-Voting Common Stock, the company announced today. Shareholders of record as of September 16, 2024, will receive a dividend of $0.05 per share, payable on September 27, 2024.

This distribution marks the eighth consecutive quarterly dividend since the company initiated its dividend policy in October 2022. The modest payout reflects U-Haul's ongoing commitment to return value to its shareholders, a practice that has been maintained for nearly two years.

As the parent entity of U-Haul International, Inc., along with Oxford Life Insurance Company, Repwest Insurance Company, and Amerco (NYSE:UHAL) Real Estate Company, U-Haul Holding Company has a diverse portfolio within the moving and storage industry.

U-Haul itself boasts a significant presence in the DIY moving market, with a vast network of rental locations throughout the United States and Canada. The company's fleet includes approximately 192,000 trucks, 138,700 trailers, and 39,500 towing devices. Additionally, U-Haul operates a large self-storage business with over 1 million rentable units across North America.

The company's dividend announcement is based on a press release statement and provides shareholders with a tangible return on their investment. The information presented here is intended to offer a factual report on U-Haul Holding Company's latest financial distribution to its shareholders.

In other recent news, U-Haul Holding Company reported a dip in first-quarter earnings, posting $195 million compared to $257 million in the same quarter of the previous year, primarily due to reduced gains from the sale of retired equipment. However, the company saw a year-over-year increase in equipment rental revenue for the first time in eight quarters, rising by $15 million. Additionally, self-storage revenue grew by $17 million, indicating improvements in average revenue per occupied foot.

U-Haul has been actively expanding its self-storage footprint, adding 17 new locations and investing $402 million in real estate acquisitions and development costs. These recent developments align with the company's aim to enhance its product and service offerings in a competitive market, focusing on customer satisfaction and market share growth.

Despite the decline in earnings, U-Haul's U-Box service is growing faster than the overall moving and storage business. The company is also considering a $500 million private placement to support growth. However, it acknowledges the need to streamline operations and improve employee productivity, as operating expenses have risen due to utilities, property taxes, and wages.

InvestingPro Insights

As U-Haul Holding Company (NYSE:UHAL) continues its practice of rewarding shareholders with dividends, a closer look at the company's financial health through InvestingPro data provides a broader perspective on its performance. U-Haul's Price/Earnings (P/E) ratio stands at 21.52, which suggests that investors are willing to pay a higher price for each dollar of earnings, possibly indicating expectations of future growth or a premium for the company's market position. However, it's important to note that the company's Price/Earnings to Growth (PEG) ratio is -0.6, which might raise questions about the growth expectations embedded in the current P/E ratio.

The company's solid balance sheet is reflected in its Price/Book (P/B) ratio of 1.65, indicating that the market values the company at a slight premium to its book value. This could be interpreted as a sign of market confidence in U-Haul's assets and its ability to generate future profits. Additionally, U-Haul's revenue for the last twelve months as of Q1 2023 stands at $5.63 billion, with a Gross Profit Margin of 29.06%, underlining the company's ability to maintain profitability.

Alongside these data points, InvestingPro Tips highlight that U-Haul's liquid assets exceed short-term obligations, providing the company with financial flexibility. The company has also been profitable over the last twelve months, reinforcing its financial stability. However, U-Haul does not pay a dividend to shareholders, aligning with the company's recent announcement. For investors looking for more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed on the U-Haul page at Investing.com.

These insights and metrics are just a glimpse of the comprehensive analysis offered by InvestingPro, which includes numerous additional tips to help investors make informed decisions about their investments in U-Haul.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.