INDIANAPOLIS - Allison Transmission Holdings Inc. (NYSE: NYSE:ALSN), a prominent player in the design and manufacture of vehicle propulsion systems, has announced an increase in its quarterly dividend. The company's Board of Directors has approved a dividend hike from $0.23 to $0.25 per share on its common stock for the first quarter of 2024. The dividend is payable on March 15 to shareholders of record as of March 4.
This marks the fifth consecutive year that Allison Transmission has raised its quarterly dividend, reflecting a commitment to balanced financial management and shareholder returns. Senior Vice President, Chief Financial Officer, and Treasurer Fred Bohley commented on the company's ability to return capital to shareholders while investing in the organization, attributing this capability to strong financial performance and a disciplined approach to capital structure.
However, the company stated that any future dividends are subject to the Board of Directors' discretion and will depend on various factors, including the company's financial position, cash flow, and capital requirements.
In addition to the dividend announcement, Allison Transmission has scheduled its 2024 annual meeting of stockholders for May 8, with a record date of March 11 for the meeting.
Allison Transmission is known for its automatic transmissions for commercial and defense vehicles and is expanding into electrified propulsion systems. The company, founded in 1915 and headquartered in Indianapolis, operates globally with a presence in over 150 countries and regional headquarters in the Netherlands, China, and Brazil.
The information provided in this article is based on a press release statement from Allison Transmission Holdings Inc.
InvestingPro Insights
Allison Transmission Holdings Inc. (NYSE: ALSN) has not only continued its tradition of increasing dividends but also shows robust financial health as evidenced by recent data from InvestingPro. The company's gross profit for the last twelve months as of Q4 2023 stands at an impressive $1,470M USD, which translates to a gross profit margin of 48.43%. This margin is a testament to the company's efficient operations and strong market position.
InvestingPro Tips highlight that Allison Transmission has a perfect Piotroski Score of 9, indicating a very healthy financial state, and the management's confidence is further reflected in their aggressive share buyback strategy. Additionally, the company's stock is trading at a low P/E ratio of 9.39 relative to its near-term earnings growth, suggesting it may be undervalued given its performance.
Investors may also note that Allison Transmission is trading near its 52-week high, with the price at 97.89% of this peak, and the stock has seen a substantial return over the last three months, with a 32.09% increase. These metrics, combined with the company's consistent dividend payments over the past 12 years, paint a picture of a stable investment with potential for growth.
For those interested in delving deeper, there are over 10 additional InvestingPro Tips available for Allison Transmission at InvestingPro. And remember, you can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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