E Daily Stock Pick: Aircastle Ltd

This week, I'm looking for the third industrials sector representative of eight for my Ivy portfolio.

That 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 services company, named Aircastle Ltd. Its trading ticker symbol is AYR. I last reviewed this company on December 31st, 2018.

Aircastle Ltd is engaged in acquiring, leasing, and selling of commercial jet aircraft to airlines. The company has only single operating segment which is leasing, financing, selling, and managing commercial flight equipment.

As of December 31, 2018, its aircraft portfolio comprised 261 aircraft leased to 81 lessees located in 44 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-like Aircastle Ltd:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

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

AYR Price

Aircastle's price per share closed at $19.88 yesterday. A year ago its price was $19.92. Price fell $0.04  for virtually no change.

Assuming Aircastle's stock trades in the range of $16 to $22 this year, Aircastle's recent $19.88 price could rise by $1.12 and go to $21.00 by early-March, 2020.

AYR Dividends

Aircastle's most recent Quarterly dividend was $0.30 declared February 13th and payable March 15th.

That $0.30 Q dividend equates to a  $1.20 annual payout and a yield of 6% at yesterday's $19.88 closing price.

Gains For AYR?

Adding the $1.20 annual estimated dividend to my $1.12 of Aircastle's estimated price upside shows a $2.32 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

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