ALSN Stock Recent News

Allison Transmission Holdings, Inc. is rated a Buy despite the recent share price drop, with expected EPS growth of 7.5% and solid business fundamentals. The company boasts a century of experience, a strong brand, an extensive distributor network, and technological advantages, providing a medium moat in a competitive industry. Record Q4 net sales and full-year EPS, increased dividends, and a $1 billion share buyback signal confidence in future growth and profitability.

This week sees 31 dividend increases, including three Dividend Kings: Genuine Parts, Commerce Bancshares, and Kimberly-Clark, showcasing impressive financial stability and growth. My investment strategy prioritizes companies with consistently rising dividends and outperforming benchmarks, aiming for long-term wealth accumulation and portfolio prosperity. I use data from the "U.S. Dividend Champions" spreadsheet and NASDAQ to identify companies with at least five years of dividend growth.

Allison Transmission Holdings, Inc.'s FY24 results show steady sales growth and strong operational efficiency despite rising input costs, highlighting management's adeptness in maintaining profitability. The company's impressive ROA and ROE, along with a solid balance sheet, indicate robust financial health and efficient asset utilization. Key growth drivers include North American on-highway demand, defense sector expansion, and innovations in electrification despite market uncertainties and potential tariff impacts.

When it comes to share buyback authorizations, not all programs create equal value. A $1 billion repurchase program can have a very different impact depending on the size of the company authorizing it.

Commercial-duty transmission manufacturer Allison Transmission ALSN recently hiked its first-quarter 2025 dividend by 8% to 27 cents, which will be paid out on March 14 to shareholders of record as of March 3. This translates to a dividend yield of 1%, which might not be too tempting but is indeed sustainable with a payout ratio of around 12%.

INDIANAPOLIS , Feb. 20, 2025 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, announced today that its Board of Directors has approved an increase in the Company's quarterly dividend from $0.25 to $0.27 per share on the Company's common stock and has declared a cash dividend of $0.27 per share on the Company's common stock for the first quarter of 2025. Payment will be made on March 14 to stockholders of record at the close of business on March 3.

This monthly article focuses on selecting high-growth dividend stocks with rapidly growing dividends rather than high current yields. We use our proprietary models to rate quantitatively and qualitatively and select the top ten names from an initial list of nearly 400 dividend stocks. The final list of ten stocks is chosen based on sector diversity, high-growth quality scores, and positive momentum, suitable for investors in the accumulation phase.

ALSN presents an attractive buying opportunity with strong growth, record sales and rising defense demand.

ALSN reports better-than-expected fourth-quarter results and expects 2025 net sales in the band of $3.2-$3.3 billion compared with $3.23 billion reported in 2024.

Allison Transmission Holdings, Inc. (NYSE:ALSN ) Q4 2024 Earnings Conference Call February 11, 2025 5:00 PM ET Corporate Participants Jacalyn Bolles - Executive Director, Treasury and Investor Relations David Graziosi - Chair and Chief Executive Officer Frederick Bohley - Chief Operating Officer, Chief Financial Officer and Treasurer Conference Call Participants Tami Zakaria - JP Morgan Tim Thein - Raymond James Kyle Menges - Citigroup Rob Wertheimer - Melius Research Ian Zaffino - Oppenheimer & Company Angel Castillo - Morgan Stanley Luke Junk - Baird Jerry Revich - Goldman Sachs Sherif El-Sabbahy - Bank of America Operator Good afternoon, thank you for standing by. Welcome to Allison Transmissions' Fourth Quarter 2024 Earnings Conference Call.