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Penske Automotive (PAG) Announces 2.9% Hike in Dividend

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Much to the delight of its shareholders, Penske Automotive Group, Inc. PAG declared a hike in second-quarter 2018 cash dividend by around 2.9% to 35 cents per share. In the past year, the company has hiked dividend by approximately 12.9%. The increased dividend will be paid on Jun 1, 2018, to shareholders of record as of May 21, 2018.

Notably, the company emphasizes on capital deployment and for that, it engages in share buybacks and hikes in dividend payment. The increase in dividend underscores the confidence of the company on its diversified transportation services business model.

Prior to this, Penske Automotive raised dividend by 3% to 34 cents per share in January 2018. The latest increase in dividend marks the twenty-eighth consecutive quarterly rise.

Importantly, Penske Automotive, the Bloomfield Hills, MI-based international transportation services company reported earnings and revenues beat in first-quarter 2018. Results were aided by strong performance across each area of its business.

Currently, Penske Automotive has a Zacks Rank #3 (Hold). Also, the company has expected long-term growth rate of 6.9%. Over the past 30 days, the Zacks Consensus Estimate for its current quarter earnings per share rose 1.4% to $1.41. Over the past six months, shares of Penske Automotive have outperformed the industry it belongs to. During this time frame, shares of the company rose 1.3%, whereas the industry declined 6.3%.

A few better-ranked stocks in the auto space are Oshkosh Corporation OSK, Gentex Corporation GNTX and Ferrari N.V. (RACE - Free Report) . Oshkosh and Gentex sport a Zacks Rank #1 (Strong Buy) while Ferrari carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oshkosh has expected long-term growth rate of 18.3%. Shares of the company have risen 13.6% over the past year.

Gentex has expected long-term growth rate of 13%. In a year’s time, shares of the company have gained 16.9%.

Ferrari has expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 61.1%.

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