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Stock impact report

Don't Let GATX Derail Your Portfolio [Seeking Alpha]

GATX Corporation (GATX) 
Last gatx corporation earnings: 1/23 08:30 am Check Earnings Report
Company Research Source: Seeking Alpha
Recent financials show revenue and net income growth, but rising long-term debt is a concern, though the dividend remains well covered at a 28% payout ratio. GATX's 1.5% dividend yield is far below the 4% Treasury yield, requiring unsustainable dividend growth to match risk-free cash flows over a decade. Given stretched stock valuations and superior risk-adjusted returns from Treasuries, I recommend avoiding GATX at current levels unless the yield rises significantly. Kruglikov/iStock Editorial via Getty Images It's been about five months since I suggested that GATX Corporation ( NYSE: GATX ) is a relatively poor investment, and in that time, the shares have returned about 11.85% against a gain of about 15% for the S&P 500. The company has just released earnings This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Show less Read more
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