Stocks that deliver dividends.

Transportation stocks often get overlooked by investors, despite the reliance by many businesses on the efficient transport of goods, commodities and even people to function. Transportation is vital to the national and global economies, even if the sector doesn't have flashy names. Income investors, meanwhile, should consider the comparatively quiet transport companies because they offer reliable payouts to shareholders. These dividends come from fees collected to move things around the world, with a portion of that cash distributed to investors. If you're looking to invest in transportation stocks for income, here are nine unique companies that yield 3% or better.

Next:Aircastle Ltd. (ticker: AYR) Credit

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Aircastle Ltd. (ticker: AYR)

Aircastle makes its money mainly by leasing private commercial aircraft around the world, boasting a fleet of some 270 aircraft rented to about 90 customers in 47 nations. Whether it’s wealthy individuals or global corporations who need a plane at their regular disposal, AYR serves a unique need in the transportation network. And don't think Aircastle is a luxury stock that can see cash dry up in a downturn. It locks in long-term contracts, and many big companies including General Electric Co. (GE) have divested corporate jet fleets in recent years to benefit from the efficiency in contracting with a company like AYR.

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Current yield: 6%

Next:

Stocks that deliver dividends.

Transportation stocks often get overlooked by investors, despite the reliance by many businesses on the efficient transport of goods, commodities and even people to function. Transportation is vital to the national and global economies, even if the sector doesn't have flashy names. Income investors, meanwhile, should consider the comparatively quiet transport companies because they offer reliable payouts to shareholders. These dividends come from fees collected to move things around the world, with a portion of that cash distributed to investors. If you're looking to invest in transportation stocks for income, here are nine unique companies that yield 3% or better.

Aircastle Ltd. (ticker: AYR)

Aircastle makes its money mainly by leasing private commercial aircraft around the world, boasting a fleet of some 270 aircraft rented to about 90 customers in 47 nations. Whether it’s wealthy individuals or global corporations who need a plane at their regular disposal, AYR serves a unique need in the transportation network. And don't think Aircastle is a luxury stock that can see cash dry up in a downturn. It locks in long-term contracts, and many big companies including General Electric Co. (GE) have divested corporate jet fleets in recent years to benefit from the efficiency in contracting with a company like AYR.

Current yield: 6%

Fortress Transportation and Infrastructure (FTAI)

Fortress Transportation and Infrastructure is a unique "multimodal" company that operates across a host of transportation types, such as aviation, marine shipping and railroads. FTAI specializes in getting goods where they need to go from start to finish. That includes renting some 8,000 shipping containers, managing a fleet of aircraft and even maintaining a short-line railroad in the Northeast to a key port on the Ohio River. The company will use other transportation providers if it needs to, but if and when it can keep business wholly in-house it will – and enjoy bigger margins as a result, which it can pass on in the form of generous dividends.

Current yield: 7.7%

Grupo Aeroportuario del Centro Norte (OMAB)

Mexican air service company OMAB is a unique choice in the transportation sector. It provides aeronautical services at privately operated airports in Mexico, including air traffic control, terminal security and parking services. It also owns and leases space at airports to retailers, restaurants and other commercial businesses. In the U.S., airports are seen as a public good because they are such an important part of transportation options for consumers and businesses. In Mexico, OMAB runs 13 international terminals as for-profit enterprises – and passes on a share of that cash to investors via dividends.

Current yield: 3.3%

KNOT Offshore Partners (KNOP)

KNOT is a $650 million energy transportation company, operating a fleet of 16 "shuttle tankers" that move crude oil from deepwater rigs to onshore refineries. These shuttles are particularly important, since the smaller tankers are typically used as alternative to pipelines in locations that are either too remote or suffer from severe weather risks. The company is relatively new, founded in 2013 and entered public markets in 2018. But its consistent dividend and double-digit yield so far is enough to make income investors take notice.

Current yield: 10.3%

Macquarie Infrastructure Corp. (MIC)

Macquarie owns and operates a massive network of airport services that include a wide range, including storage and transportation of specialty chemicals, plane de-icing and fueling, hangar rentals and even catering. MIC operates at terminals in the U.S. and Canada, where it serves commercial, business and government clients for a diversified revenue stream. And since air travel is highly regulated and seems to always operate at strong demand, MIC should continue to do well in 2019 and beyond.

Current yield: 9.9%

Penske Automotive Group (PAG)

PAG is a diversified transportation company that offers two ways to invest in this industry: an automotive group that operates about 350 car dealerships and auto supply shops and its commercial truck business that sells business vehicles and diesel engines at 70 locations. While Penske is not actually doing the transportation here, its sale of cars, parts and big rigs makes it a pretty direct play on this sector of the economy. Shareholders in the company get a piece of the action in the form of generous dividends.

Current yield: 3.2%

Ryder System (R)

Ryder was one of the most recognizable brands on the highway with its yellow box trucks and semi-rigs. But the brand has been refreshed to white with a splash of red and the company has moved far beyond truck sales and rentals. Ryder has expanded into global logistics and cloud-based package tracking systems, plus ancillary businesses like parts, service and financing. It adds up to a nearly $3 billion transportation play that is an important part of the commercial truck market. With a dividend that has more than doubled in the last decade, income investors can expect the yield will keep on trucking higher.

Current yield: 3.4%

Ship Finance International Ltd. (SFL)

SFL operates a fleet of about 80 marine vessels. Its container ships, tankers and bulk shipping vessels move all manner of items around the world. The cargo list includes crude oil, foreign-made automobiles, agricultural products and consumer goods. Global shipping rates fell off a cliff about 10 years ago thanks to the double hit of the financial downturn and a glut in supply, with too many vessels coming online and offering services at the same time. However, SFL launched in 2004 with an eye for these dynamics and has since seen stable share prices – and of course, a large dividend from reliable cargo fees.

Current yield: 11%

USD Partners (USDP)

USD Partners is a unique transportation play that's focused on the energy supply chain. Its terminals connect pipelines to rails at strategic locations across the U.S. and Canada, and includes some 1,700 different specialized railcars used to transport crude oil, biofuels and other products. This business is far less exposed to the ups and downs of commodity prices. USDP is similar to a toll-taker that charges a small fee on all the fuels it passes through. The result is a reliable and generous dividend yield.

Current yield: 13.3%

9 transport stocks for income investors to buy.

Aircastle Ltd. (AYR)Fortress Transportation and Infrastructure (FTAI)Grupo Aeroportuario del Centro Norte (OMAB)KNOT Offshore Partners (KNOP)Macquarie Infrastructure Corp. (MIC)Penske Automotive Group (PAG)Ryder System (R)Ship Finance International Ltd. (SFL)USD Partners (USDP)1 of 12

Jeff Reeves, Contributor

A veteran journalist with extensive capital markets experience, Jeff Reeves began writing for ...  Read more

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