On Friday, February 14th the Board of Directors of Magna International Inc. (MGA) announced a quarterly dividend increase of from $0.475 to $0.485 per share that’s payable March 14, 2025 to holders of record February 28, 2025. This represents a 2.11% increase over the last quarterly dividend.
At the current price of $38.09 (yesterday's close), this increase will raise MGA's dividend yield to 5.09%.
Magna International Inc. is a Dividend Contenders with a 16 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 3.3, 3.4, 5.4 and 9.6 (Dividend Champions.xls)
As an owner of 100 shares of Magna, the recent dividend increase adds $2.98 to my projected annual net dividend income.
I was expecting the same increase as last time, just over 3%, so this was another slight disappointment. Although, especially in uncertain times, a dividend cut could also have been announced.
This recent dividend increase marks the ninth consecutive raise I’ve received from Magna International since I acquired my first shares in June 2016. Over this period, MGA’s quarterly dividend has grown steadily from $0.25 to $0.485 per share, reflecting a 94% increase. While the latest dividend hike was slightly below my expectations, the long-term trajectory remains strong.
The moment of writing, MGA’s weight of my portfolio is about 0.49% and its share of future annual dividend income is approximately 0.59%.
Following this increase, my yield on cost is 4.60%.
Summary of 2025 Dividend Increases / Cuts
Click here to see my portfolio holdings.
You can follow the development of my dividends here.
Full Disclosure: Long MGA
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