Auto retailer Penske Automotive Group Inc. (NYSE: PAG) announced yesterday that during their Board meeting in Bloomfield Hills, Mich. an 8-cent-per-share cash dividend was approved. Stockholders will be receiving 7 more cents than they did during the payouts from 2011’s first quarter, resulting in a 14 percent increase.
As of August 10th, shareholders will receive their dividends in early September. Chairman Roger Penske said that the dividend shows the company has confidence in its operating performance and business model.
The Penske Automotive Group reported that last week after the July 21st stockholder meeting, the PAG stock rose in earnings by 34 percent in the second quarter. This is a direct result of increases in average selling prices on both new/ used cars/ trucks, quality service in the parts and service department and recent acquisitions in Connecticut and California. In conclusion, Penske made $39.6 million, or 43 cents per share, in the quarter, compared with $29.4 million, or 32 cents per share, in the same quarter last year.
Penske still expects supply disruptions from the Japan earthquake in March to have residual effects on Penske Automotive Group’s third quarter performance. But for now the markets closed yesterday with a 52-week high stock price of $23.96.
