Allison Transmission Holdings, Inc. (NYSE:ALSN) to Issue $0.29 Quarterly Dividend

Key Points

• Allison Transmission declared a quarterly dividend of $0.29 per share, payable August 31 to shareholders of record August 21. The dividend implies an annualized payout of $1.16 and a 0.9% yield.
• The dividend appears well covered, with an 11.5% payout ratio and analysts forecasting a 10.5% payout ratio next year. The company has increased its dividend for two consecutive years.
• Allison reported quarterly earnings of $2.73 per share, beating estimates of $2.48, while revenue rose 92.4% year over year to $1.57 billion. Shares recently traded down 1.3% at $123.35.

Allison Transmission Holdings, Inc. (NYSE:ALSN - Get Free Report) announced a quarterly dividend on Tuesday, August 11th. Investors of record on Friday, August 21st will be given a dividend of 0.29 per share by the auto parts company on Monday, August 31st. This represents a c) annualized dividend and a yield of 0.9%. The ex-dividend date is Friday, August 21st.

Allison Transmission has raised its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 2 consecutive years. Allison Transmission has a dividend payout ratio of 11.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Allison Transmission to earn $11.08 per share next year, which means the company should continue to be able to cover its $1.16 annual dividend with an expected future payout ratio of 10.5%.

Allison Transmission Trading Down 1.3%

NYSE:ALSN traded down $1.64 on Wednesday, hitting $123.35. The stock had a trading volume of 20,887 shares, compared to its average volume of 975,738. The company has a quick ratio of 1.17, a current ratio of 1.81 and a debt-to-equity ratio of 2.07. The stock has a market cap of $10.19 billion, a price-to-earnings ratio of 19.71, a PEG ratio of 0.68 and a beta of 0.95. The company has a fifty day moving average price of $117.54 and a two-hundred day moving average price of $118.39. Allison Transmission has a 1-year low of $76.01 and a 1-year high of $137.62.

Allison Transmission (NYSE:ALSN - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The auto parts company reported $2.73 EPS for the quarter, beating the consensus estimate of $2.48 by $0.25. The business had revenue of $1.57 billion for the quarter, compared to analyst estimates of $1.50 billion. Allison Transmission had a return on equity of 38.18% and a net margin of 12.02%.The company's quarterly revenue was up 92.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.29 EPS. Equities research analysts expect that Allison Transmission will post 9.76 earnings per share for the current fiscal year.

Allison Transmission Company Profile

Allison Transmission Holdings Inc is a global designer, manufacturer and seller of fully automatic transmissions and hybrid propulsion systems for commercial duty vehicles and off-highway equipment. The company's products are engineered to improve fuel efficiency, reduce emissions and enhance performance across a broad range of industries. Allison's core transmission portfolio serves applications such as on-highway trucks and buses, medium- and heavy-duty commercial vehicles, and military ground vehicles.

In addition to conventional automatic transmissions, Allison offers advanced hybrid systems that integrate electric motors with mechanical transmission components.

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