Penske Automotive (PAG) will raise its quarterly dividend by 3 percent to $0.34 per share in the first quarter of 2018. Last year the transportation services company hiked its dividend by a total of 13.8 percent.

The increased dividend is payable on March 1, 2018, to shareholders of record on February 12, 2018. The current dividend yield for PAG is 2.5%.

Penske Automotive Group President Robert H. Kurnick, Jr., said, "I am pleased to announce that our Board of Directors has increased the dividend for PAG's shareholders for the 27(th) consecutive quarter. The increase in the dividend reflects our commitment to increasing returns for shareholders and reinforces the continued confidence we have in the strength of the company's business model and cash flow."

Penske Automotive Group, Inc. is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Canada and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand.