Saturday, February 22, 2020

Dividend Increase – Magna International Inc. (MGA)

Yesterday, February 21, the Board of Directors of Magna International Inc. announced a quarterly dividend increase from $ 0.365 to $ 0.40 per share that’s payable March 20, 2020 to holders of record March 6, 2020. This represents a 9.59% increase to the last quarterly dividend.

During the three months and year ended December 31, 2019, Magna repurchased 4.7 million shares for $254 million and 25.8 million shares for $1.29 billion, respectively. In addition, we paid dividends of $111 million and $449 million for the three months and year ended December 31, 2019, respectively.

With current price $ 51.55 (yesterday's close), this raise brings their dividend yield to 3.10 %.

MGA is a Dividend Contenders with an 11 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 10.6, 13.4, 13.9 and 41.6. (Dividend Champions.xls)

Since I own 100 shares of MGA, this will increase my portfolio's projected annual net dividend income by $ 10.43.

This increase raises my YOC to 3.80%.

Summary of 2020 Dividend Increases / Cuts

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long MGA

Thanks for stopping by!

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