BLOOMFIELD HILLS, Mich. - Penske Automotive Group, Inc. (NYSE: NYSE:PAG), recognized for its global transportation services and retail automotive and commercial truck dealerships, disclosed today that its Board of Directors has approved a 10% increase in the company's quarterly cash dividend. The new dividend of $0.96 per share reflects the company's robust financial position and consistent cash flow generation.
The increased dividend is scheduled for payment on June 4, 2024, to shareholders on record as of May 20, 2024. "Based on the strength of our balance sheet and continued strong cash flow, we are pleased to provide our shareholders with a 10% increase in the cash dividend," stated Robert Kurnick, Jr., President of Penske Automotive Group.
Penske Automotive Group operates a vast network of automotive and commercial truck dealerships across several countries, including the United States, the United Kingdom, Canada, Germany, Italy, and Japan.
It also plays a significant role in the North American commercial truck retail market, particularly with Freightliner trucks. Beyond retail, Penske distributes and retails commercial vehicles, engines, power systems, and related parts and services, primarily in Australia and New Zealand.
This announcement is based on a press release statement from Penske Automotive Group, Inc.
InvestingPro Insights
Penske Automotive Group (NYSE: PAG) has recently announced a dividend increase, which aligns with the company's history of consistent dividend payments. According to InvestingPro Tips, PAG has not only raised its dividend for three consecutive years but has also maintained dividend payments for 14 consecutive years. This consistency is a testament to the company's financial resilience and commitment to returning value to shareholders. It's worth noting that PAG is also a prominent player in the Specialty Retail industry and has been profitable over the last twelve months.
Looking at the real-time metrics from InvestingPro, Penske Automotive Group's market capitalization stands at a solid 10.22 billion USD. The company's price-to-earnings (P/E) ratio is 10.62, reflecting its earnings relative to its share price. This is slightly below the adjusted P/E ratio for the last twelve months as of Q1 2024, which is 10.22. The revenue growth for the same period shows a healthy increase of 5.17%, indicating the company's ability to grow its top line in a competitive market.
For potential investors considering PAG's stock, the dividend yield as of the most recent data is an attractive 2.28%. This, coupled with a history of dividend growth, which saw an impressive increase of 42.62% over the last twelve months as of Q1 2024, makes PAG a potentially appealing investment for those seeking income through dividends.
For more detailed analysis and additional InvestingPro Tips, such as the company's low price volatility and the recent downward earnings revisions by analysts, readers can visit https://www.investing.com/pro/PAG. There are 10 more tips available on InvestingPro, which could provide deeper insights into PAG's financial health and market performance. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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