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Penske Automotive (PAG) Announces 3.1% Hike in Dividend

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Much to its shareholders’ delight, Penske Automotive Group, Inc.’s (PAG - Free Report) board of directors has approved a 3.1% hike in cash dividend per share for the third quarter of 2017. The revised dividend of 33 cents will be paid on Dec 1, 2017 to shareholders of record as of Nov 10, 2017.

This marks the company’s 26th consecutive quarter of dividend increase . The company had earlier paid 32 cents of dividend per common share on Sep 1, 2017 for the second quarter of fiscal 2017. This persistent rise in dividend denotes the management’s undiminished confidence on the diversified business model of the company.

Based in Bloomfield Hills, MI, the company is one of the largest automotive retailers in the United States. Primarily engaged in new and used vehicles sale, Penske Automotive also offers insurance and vehicle service contracts, replacement parts, maintenance repair services and aftermarket automotive products.

Penske Automotive Group, Inc. Price and Consensus

Shares of Penske Automotive have underperformed the industry it belongs to in the last six months. The stock has gained 3.3% compared with the industry’s 19.7% rally.

Penske Automotive currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are The Goodyear Rubber & Tire Company (GT - Free Report) , Magna International Inc. (MGA - Free Report) and Navistar International Corporation (NAV - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Goodyear has an expected long-term earnings growth rate of 12.4%.

Magna has an expected long-term earnings growth rate of 9.5%.

Navistar has an expected long-term earnings growth rate of 5%.

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