Friday, June 17, 2016

Recent Buy - Magna International Inc. (MGA)

16th June I Bought 50 shares of  Magna International Inc. at $ 38.33 per share plus commission.

Magna International Inc. develops, manufactures, engineers, supplies, and sells automotive products. It operates through North America, Europe, Asia, and Rest of World segments. The company offers body and chassis systems, and related engineering services; seating systems, including complete seating systems, seat structures and mechanisms, and foam and trim products; and powertrain systems, such as transmissions, driveline systems, fluid pressure and controls, metal forming solutions, and engineering services. It also provides vision systems comprising interior and exterior mirrors, actuators, door handle illumination products, headlamps and tail lamps, and small lighting products; and closure systems comprising door modules, power closure systems, engineered glass products, window systems, running boards and roof racks, latching systems, lighting systems, sealing systems, electronic features, handle assemblies, composite components, and hinges and rods. In addition, the company provides electronic systems, including driver assistance systems, secure connectivity products, head-up displays, and electronic controllers; exterior systems, such as fascia and trim products, front end modules, liftgate and exterior modules, active aerodynamics, and lightweight composites; and roof systems, including sliding folding and modular roofs, retractable hard tops, and soft tops. Further, it offers vehicle engineering and contract vehicle assembly services; fuel systems; engineering support services; and tooling and other products. The company was founded in 1957 and is headquartered in Aurora, Canada.

MGA is a Dividend Challenger with a 6 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 15.8, 17.0, 28.1 and 8.8. (Dividend Champions.xls) After the last dividend increase declaration, Magna International Inc. now pays dividends of $0.25 per share normally in March, June, September and December.

Details of my purchase:

Some ratings for MGA:

    Yahoo:  Mean Recommendation 2.2, 1y Target Est $54.50
    Reuters: Mean Rating 2.17
    Morningstar:  (***)

If you are interested, you can read the analysis of Magna by The Dividend Guy here.

At today's exchange rate, this purchase 50 shares of MGA will increase €33.10 ($37.25) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9430.00. With purchase price $38.33 plus commission ($5.00) my starting yield on cost is 2.60%.

Click here to see my portfolio.

Full Disclosure: Long MGA  


  1. Nice purchase, Hawk. its one of the most undervalued companies out there.


  2. Sweet...Magna is definitely missed by alot of long-haul investors :)

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