E Daily Stock Pick: Aircastle Limited (AYR)

I'm now looking for a second stalwart industrial sector representative for my new Ivy portfolio. That industrial sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a small-cap rental and leasing service, Aircastle Ltd. Its trading ticker symbol is AYR.

Aircastle Ltd. is a holding company. It mainly invests in aviation assets, including acquiring, leasing, managing and selling high-utility commercial jet aircraft. Through its subsidiaries, AYR leases, finances, sells and manages commercial flight equipment to airlines worldwide. 

The company also invests in other aviation assets. As of December 31, 2017, its aircraft portfolio comprised 236 aircraft leased to 81 lessees located in 43 countries. Aircastle Limited was founded in 2004 and is based in Stamford, Connecticut.

I use three key data points to gauge the value of any dividend equity or fund like Aircastle Ltd. (AYR):

(1) Price

(2) Dividends

(3) Returns Besides those three, four more keys will finally unlock equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money.

AYR Price AYR's price per share was $17.16 Friday. A year ago its price was $23.39.

So the price dropped $4.23 per share last year, or almost 27%. Assuming AYR's stock will trade in the range of $15 to $25 next year, AYR's recent $17.16 price could recover by $2.84 and grow to $20.00 by late-December, 2019.

AYR Dividends AYR's most recent quarterly dividend was $0.30 declared October 30th and paid, December 14th. That $0.30 quarterly stipend equals an annual payout of $1.20 yielding 6.99% at Friday's $17.16 price.

Gains For AYR? Adding the $1.20 annual estimated dividend to my estimated $2.84 annual price upside estimate for Aircastle Ltd. (AYR) totals up to a $4.04 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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