Penske Automotive raises dividend to boost yield above 2%

Penske Automotive Group Inc.
PAG,
-1.35%
said Wednesday that it has raised its dividend by 9.7%, citing a healthy balance sheet and continued strong cash flow. Owners of the transportation services company’s stock as of Nov. 10 will receive the new quarterly dividend of 79 cents a share, up from 72 cents a share, on Dec. 1. The was still inactive in the premarket. Based on Tuesday’s closing price of $151.73, the new annual dividend rate of $3.16 a share implies a dividend yield of 2.08%, which compares with the implied yield for the S&P 500
SPX,
-0.52%
of 1.59%. The stock has lost 14.4% over the past three months through Tuesday while the S&P 500 has slipped 4%.