On January 25, 2023, Penske Automotive (PAG) announced that it will hike its dividend by another 7.0% to 61 cents per share quarterly. This follows four dividend hikes in both 2022 and 2021. The new dividend yield for PAG is 1.95% at a stock price of $119. In Q4 of 2022 PAG hiked the dividend by 7.5%.
"Based on the strength of the Company's diversified business model and our continued strong cash flow, we are pleased to provide our shareholders with an increase in the cash dividend," said Penske Automotive Group President, Robert Kurnick, Jr. The dividend is payable March 1, 2023, to shareholders of record as of February 10, 2023. The next ex-dividend date for PAG is February 9, 2023.
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, 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. Penske became a public company in 1996 and has paid an uninterrupted dividend since 2011. The dividend was halted in 2009 during the financial crisis and in 2020 because of COVID-19. In Q3 of 2020 the dividend was reinstated again.