Penske Automotive increases quarterly dividend by 4.8%

BLOOMFIELD HILLS, Mich. - Penske Automotive Group, Inc. (NYSE:PAG) announced Wednesday its Board of Directors has approved a quarterly dividend increase of 4.8% to $1.32 per share, marking the company’s 19th consecutive quarterly dividend increase. According to InvestingPro data, PAG has maintained dividend payments for 15 consecutive years, with an impressive dividend growth of 45% over the last twelve months.

The dividend, which represents a $0.06 per share increase, will be payable on September 3, 2025, to shareholders of record as of August 15, 2025.

"We are pleased to provide shareholders with another increase in the quarterly dividend, reflecting the continued strength of our balance sheet and strong cash flow," said Robert H. Kurnick, Jr., Penske Automotive Group President. The company’s financial health appears solid, with InvestingPro analysis showing a healthy Altman Z-Score of 3.7 and a current dividend yield of 3%.

Penske Automotive Group operates as a diversified international transportation services company with dealerships across the United States, United Kingdom, Canada, Germany, Italy, Japan, and Australia. The company is one of the largest retailers of commercial trucks in North America for Freightliner. With a market capitalization of $11.5 billion and annual revenue exceeding $30 billion, PAG has established itself as a prominent player in the Specialty Retail industry.

The Michigan-headquartered firm also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services primarily in Australia and New Zealand.

The company employs over 28,700 people worldwide and owns 28.9% of Penske Transportation Solutions, which manages a fleet of over 414,000 trucks, tractors, and trailers under various service contracts.

Penske Automotive Group is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes, according to the company’s press release statement.

In other recent news, Penske Automotive Group reported its financial results for the first quarter of 2025, with an adjusted earnings per share (EPS) of $3.39, exceeding the forecast of $3.23. However, the company experienced a revenue shortfall, posting $7.6 billion against the expected $7.71 billion. Additionally, Penske Automotive has declared a 3.3% increase in its quarterly dividend, now at $1.26 per share, marking the 18th consecutive quarterly rise. The company also expanded its securities repurchase program by $250 million, bringing the total authorization to $295.8 million.

Penske Automotive has completed the acquisition of a Ferrari dealership in Modena, Italy, enhancing its luxury presence in the region. This acquisition adds to its 29 automotive retail locations in Italy and nine Ferrari locations worldwide. In analyst activity, Citi raised Penske Automotive’s price target to $195 from $185, maintaining a Buy rating. The adjustment reflects Penske’s limited exposure to potential tariff increases, with only 16% of its gross profit impacted due to its significant international operations.

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