Author: Brian Bollinger, Simply Safe Dividends

There’s reason to believe that better times are ahead for this bank, and its CEO seems like the right leader for the job. With the company remaining in great financial shape and paying a safe 4% dividend yield, we are content continuing to give its turnaround more time.

For dividend investors seeking a secure income investment with decent long-term growth prospects, it may be an interesting industrials candidate as part of a well-diversified dividend portfolio.

I prefer to invest my money elsewhere.

The company’s core business model remains highly recession resistant, and its free cash flow is usually very stable.

The company enjoys an asset-light model which generates consistent free cash flow, holds profits fairly steady during industry downturns thanks to its variable cost structure, and earns solid returns on invested capital. When combined with management’s conservative capital allocation and the essential logistics services it provides, the company has been able to reward shareholders with higher dividends each year since it went public in 1997.