PACCAR Inc. (PCAR - Free Report) announced that its board members have approved an additional cash dividend of $1.2 per share, to be paid on Jan 4, 2018 to shareholders of record as of Dec 14, 2017.
Additionally, the company will also be paying its usual quarterly cash dividend of 25 cents per share on Mar 6, 2018 to shareholders of record on Feb 13, 2018.
Apart from rewarding shareholders with regular payouts since 1941, PACCAR has been consistently investing in developing vehicles and powertrain as well as improving its driver assistance systems and truck technologies. Also, the company diligently puts focus on developing its production facilities and aftermarket distribution centers. Strong profits and robust cash flow enables PACCAR to take such initiatives.
PACCAR Inc. Price and Consensus
In July and September, the company disbursed its regular quarterly cash dividend of 25 cents a share. In April, PAACR hiked the same by 4% from 24 cents to 25 cents.
Earlier in December 2016 and December 2015, the company paid an extra cash dividend of 60 cents and $1.4 per share, respectively. The additional cash dividends reflect management’s confidence in the business.
In the last six months, shares of PACCAR have outperformed the industry it belongs to. The stock has rallied 10.5% compared with the industry’s 6.8% gain during the period.
Zacks Rank & Other Key Picks
PACCAR sports a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the auto space are BorgWarner Inc. (BWA - Free Report) , Toyota Motor Corporation (TM - Free Report) and Cummins Inc. (CMI - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BorgWarner has an expected long-term growth rate of 9%. In the last six months, shares of the company have been up 24.4%.
Toyota has an expected long-term growth rate of 6.2%.The stock has seen the Zacks Consensus Estimate for quarterly earnings being revised 4.3% upward over the last 30 days.
Cummins has an expected long-term growth rate of 12.2%. Year to date, its shares have been up 20.6%.
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