RENO, Nev. - U-Haul Holding Company, the parent entity of several subsidiaries including U-Haul International, has declared a quarterly cash dividend for its shareholders. Today, the company announced that a dividend of $0.05 per share will be distributed for its Series N Non-Voting Common Stock (NYSE: UHAL.B).
Shareholders on record as of June 17, 2024, will be eligible to receive the dividend, which is scheduled for payment on June 28, 2024.
This dividend issuance marks the seventh instance since U-Haul Holding Company introduced its dividend policy in October 2022. The policy reflects the company’s commitment to providing shareholder value and its confidence in the financial stability of the firm.
U-Haul Holding Company oversees a diverse portfolio, including U-Haul International, Oxford Life Insurance Company, Repwest Insurance Company, and Amerco (NYSE:UHAL) Real Estate Company. U-Haul, a well-known brand within the holding, has established itself as a leader in the do-it-yourself moving industry since its inception in 1945, boasting a vast network of over 23,000 locations across the United States and Canada.
The company attributes its growth to the customer loyalty that has expanded its fleet to nearly 188,700 trucks, 139,400 trailers, and 43,700 towing devices. Additionally, U-Haul is a major player in the self-storage market, with more than 1,000,000 rentable storage units. It also holds the title of the largest retailer of propane in the U.S. and is a prominent installer of permanent trailer hitches in the automotive aftermarket.
The distribution of this dividend is based on a press release statement from U-Haul Holding Company. Shareholders and investors are advised to note the record and payment dates to ensure they meet the eligibility criteria for the dividend.
In other recent news, U-Haul Holding Company reported a Q4 loss of $863,000 for fiscal year 2024, down from earnings of $37.4 million in the same quarter the previous year. This decline was attributed to significant price increases from automotive manufacturers. Despite a decrease in equipment rental revenue, U-Haul saw an increase in self-storage revenues both quarterly and annually.
The company's fiscal year 2024 earnings totaled $628.7 million, showing a decrease from $924.5 million in fiscal year 2023. U-Haul invested $1.3 billion in real estate acquisitions and development in fiscal year 2024, with a projected increase for fiscal year 2025.
In response to these recent developments, U-Haul plans to focus on productivity enhancements and digitalization to combat rising personnel and operational costs. The company also expects growth in truck rental and self-storage, aiming to maintain or increase rates. These strategies are part of U-Haul's efforts to navigate a challenging fiscal landscape and position itself for future growth.
InvestingPro Insights
As U-Haul Holding Company (NYSE: UHAL) announces its quarterly dividend, investors may be curious about the company's financial health and market performance. According to data from InvestingPro, U-Haul's price-to-earnings (P/E) ratio stands at 19.1, suggesting that the stock may be reasonably valued in the current market relative to earnings. The company's price-to-book (P/B) ratio is at 1.66, which can be appealing to value investors looking for assets that are priced close to their actual net asset value.
InvestingPro Tips highlight that U-Haul's stock trades with low price volatility, which may indicate a level of market stability for shareholders. Moreover, the company's liquid assets exceed its short-term obligations, providing a cushion for operational needs or unforeseen expenses. This financial stability aligns with the company's ability to maintain its dividend policy, reflecting confidence in its ongoing financial performance. However, it's worth noting that U-Haul does not typically offer a high free cash flow yield, as indicated by its valuation.
For those considering a deeper dive into U-Haul's financial metrics and market performance, InvestingPro offers additional tips. Currently, there are four more tips available that could provide further insights into the company's financial health. Interested readers can find these tips by visiting the company's page on https://www.investing.com/pro/UHAL. To enhance your InvestingPro experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors should also be aware of the company's recent performance metrics. Over the last twelve months, U-Haul has seen a revenue of $5.63 billion, though it has experienced a revenue decline of 4.08%. Despite this, the company has maintained a gross profit margin of 29.32%, which indicates effective cost management relative to its sales. With its next earnings date slated for July 31, 2024, shareholders and potential investors will be keen to see if the company's strategies will bolster future growth and sustain its dividend payments.
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