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Penske Automotive (PAG) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Penske Automotive (PAG) is headquartered in Bloomfield Hills and operates in the Retail-Wholesale sector, with a price change of 15.38% year-to-date [3] - The company currently pays a dividend of $1.19 per share, resulting in a dividend yield of 2.71%, which is significantly higher than the Automotive - Retail and Wholesale industry's yield of 0.2% and the S&P 500's yield of 1.54% [3] Dividend Performance - The annualized dividend of Penske Automotive is $4.76, reflecting a 16.4% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 26.65% [4] - The current payout ratio is 31%, indicating that the company pays out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Penske Automotive's earnings in 2025 is $13.86 per share, which represents a year-over-year earnings growth rate of 0.87% [5] Investment Considerations - Penske Automotive is considered a compelling investment opportunity due to its strong dividend performance and the potential for future growth [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]