Penske Raises Dividend 2.4%

Penske Automotive Group (PAG) recently announced a 2.4% increase in their quarterly dividend from 42 cents per share to 43 cents per share. This would equal $1.72 per share for the year assuming their dividend does not change any further. I consider this a really good sign coming from them considering this will only be their second dividend payment since they temporarily halted dividends due to Coronavirus. The other thing to consider for Penske is that this could be a sign that they are going back to their pre Covid strategy of raising their dividend by 1 cent a share quarterly rather than bumping it up once a year like most companies do.

Penske could be a really good company to look into buying right now, especially after their crazy market pullback of 7.43% today bumped their dividend yield up to 2.84%. They have been able to weather Corona so far much better than expected, hence the dividend being brought back and increased. They also have a relatively low price to earnings of 10.98 right now. I will definitely be keeping a closer eye on them over the next little while especially if they continue to drop over the next few days or weeks.

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Penske Automotive Group (PAG) Share Price $60.57/ Market Cap $4.87Billion/ 52 Week Range $19.99-$66.84/ P/E 10.98/ EPS $5.52/ Dividend $1.72/ Yield 2.84%

Penske Automotive Group is an international transportation services company that operates automotive and commercial truck dealerships mainly in the United States, Canada and Western Europe. They also distribute commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. They employ more than 27,000 people worldwide and are a member of the Fortune 500, Russell 1000, and Russell 3000 indexes and are ranked among the worlds most admired companies by Fortune magazine. Penske is headquartered in Bloomfield Hills, Michigan.

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Disclaimer: I currently own shares of Penske Automotive Group, but have no immediate plans to buy or sell any shares. All share prices are as of January 27, 2021.

Published by Colby McTavish

I am a Third year Heavy Equipment Technician. I also have a diploma in business management from MacEwan university. I have 2 children. In my spare time I race stock cars, play ball hockey, trade stocks and work on vehicles when I am not hanging out with my kids and my other half.

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