5 Best Railroad Stocks that Pay Dividends

2. Trinity Industries, Inc. (NYSE:TRN)

Dividend Yield as of August 18: 3.36%

Trinity Industries, Inc. (NYSE:TRN) is a market-leading company that provides railcar products and services in North America. As the company improved its inventories to speed up its production in the second half of the year, Wells Faro reiterated its Overweight rating on the stock in July.

In Q2 2022, Trinity Industries, Inc. (NYSE:TRN) reported revenue of $417 million, showing a 12.2% year-over-year growth. Its backlog was recorded at $2.2 billion at the end of the quarter, and lease fleet utilization stood at 97.2%. Year-to-date, the company returned $90 million of capital to shareholders. Moreover, its strong free cash flow after investments and dividends stood at $43 million.

Trinity Industries, Inc. (NYSE:TRN) has raised its dividends for 11 years in a row. The company pays a quarterly dividend of $0.23 per share with a dividend yield of 3.36%, as of August 18.

As of the close of Q2 2022, 18 hedge funds in Insider Monkey’s database owned investments worth $80.4 million in Trinity Industries, Inc. (NYSE:TRN). Chuck Royce and Jim Simons were two of the company’s most prominent stakeholders in Q2.