LIVERMORE, Calif. - McGrath RentCorp (NASDAQ:MGRC), a prominent North American business-to-business rental company, has declared a quarterly cash dividend of $0.475 per common share for the quarter ending June 30, 2024. The dividend is scheduled to be paid on July 31, 2024, to shareholders of record as of July 17, 2024.
This latest dividend announcement continues McGrath RentCorp's longstanding practice of increasing shareholder returns, marking the 33rd consecutive year of dividend growth for the company. McGrath RentCorp's commitment to consistent dividend payouts reflects its stable financial performance and strategic focus on providing exceptional customer service across its various business segments.
Founded in 1977, McGrath RentCorp specializes in modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses, as well as electronic test equipment rental solutions via its TRS-RenTelco division. The company's diverse rental offerings contribute to the circular supply economy, emphasizing efficiency and environmental sustainability in its operations.
The company has established a strong track record of profitability and business expansion over its more than four decades of operation. McGrath RentCorp's headquarters are located in Livermore, California, and further information about the company and its services can be found on its websites.
The dividend declaration by McGrath RentCorp's Board of Directors is based on the company's financial results and is part of its long-term capital allocation strategy aimed at delivering value to its shareholders. This information is derived from a press release statement issued by the company.
In other recent news, McGrath RentCorp has reported a robust growth in the first quarter of 2024. The company's rental revenue has seen a 9% increase, sales revenues have surged by 48%, and its adjusted EBITDA has grown by 17%. The mobile modular segment has been a key performer, with rental revenue up by 19% and sales revenues growing by 49%. However, TRS-RenTelco, a division of the company, experienced a decrease in rental revenues due to weakness in the computer and semiconductor sectors.
In addition to these developments, McGrath RentCorp is also advancing with its merger plans with WillScot (NASDAQ:WSC) Mobile Mini (NASDAQ:MINI_old). The company has filed the preliminary Form S-4 and expects to hold a special shareholder meeting for the approval of the merger. Analysts from various firms have been keeping a close eye on these developments, providing their insights and expectations for the company's future.
InvestingPro Insights
McGrath RentCorp (NASDAQ:MGRC) has not only continued its impressive track record of dividend growth but also presents a compelling profile for investors seeking stability. An InvestingPro Tip highlights that MGRC has raised its dividend for 26 consecutive years, showcasing the company's commitment to returning value to its shareholders consistently. Additionally, the stock is known for its low price volatility, which might appeal to investors looking for a less turbulent investment experience.
From a financial standpoint, the latest InvestingPro Data shows McGrath RentCorp with a market capitalization of $2.64 billion and a P/E ratio of 20.44, as of the last twelve months up to Q1 2024. The company's revenue has grown by 26.93% during the same period, indicating healthy business expansion. Moreover, with a dividend yield of 1.79% and a recent dividend growth of 2.15%, McGrath RentCorp demonstrates a balance between growth and income, a factor that might be particularly attractive to dividend investors.
For those looking for more detailed analysis and additional insights, there are more InvestingPro Tips available, including the company's ability to maintain profitability and a strong return over the last five years. Subscribers can access these tips and more by visiting the InvestingPro platform. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the full range of insights and metrics that can inform your investment decisions.
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