BorgWarner Inc. Plans Quarterly Dividend of $0.17 (NYSE:BWA)

Key Points

• BorgWarner declared a quarterly dividend of $0.17 per share, payable June 15 to shareholders of record June 1, implying a 1.2% yield and $0.68 annualized.
• The company beat Q4 expectations with $1.35 EPS (vs. $1.16 consensus) on $3.57B revenue and set FY2026 guidance of $5.00–$5.20 per share (analysts expect $5.14).
• BorgWarner’s dividend appears sustainable, with a current payout ratio of about 14.7% and an expected future payout ratio near 11.9% based on projected earnings.

BorgWarner Inc. (NYSE:BWA - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Stockholders of record on Monday, June 1st will be paid a dividend of 0.17 per share by the auto parts company on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Monday, June 1st.

BorgWarner has decreased its dividend by an average of 0.0%per year over the last three years and has raised its dividend annually for the last 1 consecutive years. BorgWarner has a payout ratio of 14.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect BorgWarner to earn $5.72 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 11.9%.

BorgWarner Price Performance

BorgWarner stock traded up $2.78 during mid-day trading on Thursday, reaching $56.99. 2,795,835 shares of the company were exchanged, compared to its average volume of 2,677,778. The company has a fifty day simple moving average of $54.48 and a 200-day simple moving average of $49.35. BorgWarner has a 12 month low of $28.22 and a 12 month high of $70.08. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.07 and a quick ratio of 1.70. The firm has a market cap of $11.74 billion, a PE ratio of 45.59, a PEG ratio of 1.16 and a beta of 1.04.

BorgWarner (NYSE:BWA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The auto parts company reported $1.35 EPS for the quarter, topping analysts' consensus estimates of $1.16 by $0.19. BorgWarner had a return on equity of 17.89% and a net margin of 1.93%.The firm had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.49 billion. During the same quarter last year, the company earned $1.01 EPS. The company's revenue was up 3.9% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, equities research analysts expect that BorgWarner will post 5.14 earnings per share for the current fiscal year.

Insider Activity at BorgWarner

In related news, VP Isabelle Mckenzie sold 2,458 shares of the firm's stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $61.54, for a total transaction of $151,265.32. Following the sale, the vice president owned 66,351 shares of the company's stock, valued at $4,083,240.54. This trade represents a 3.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Stefan Demmerle sold 2,500 shares of the firm's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $53.03, for a total value of $132,575.00. Following the sale, the vice president directly owned 233,746 shares in the company, valued at approximately $12,395,550.38. This trade represents a 1.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 78,083 shares of company stock worth $4,638,585 over the last 90 days. 0.76% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BWA. Root Financial Partners LLC bought a new position in BorgWarner during the 3rd quarter worth $27,000. Prosperity Bancshares Inc bought a new position in BorgWarner during the 4th quarter worth $37,000. Mather Group LLC. bought a new position in BorgWarner during the 3rd quarter worth $41,000. Sound Income Strategies LLC raised its position in BorgWarner by 9,888.9% during the 4th quarter. Sound Income Strategies LLC now owns 899 shares of the auto parts company's stock worth $42,000 after purchasing an additional 890 shares during the last quarter. Finally, Torren Management LLC bought a new position in BorgWarner during the 4th quarter worth $48,000. 95.67% of the stock is owned by institutional investors.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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