PACCAR Inc. (NASDAQ:PCAR) Raises Dividend to $0.35 Per Share

Key Points

• PACCAR raised its quarterly dividend to $0.35 (a 6.1% increase from $0.33), yielding about 1.2% annualized; the payout ratio (~19.5%) and a five-year streak of annual increases indicate the dividend is well covered by earnings.
• Q1 showed mixed results: EPS of $1.15 beat estimates by $0.02, but revenue of $6.23B missed expectations and fell ~9.8% YoY, highlighting tepid new-truck demand even as parts and financial-services margins supported profitability.
• PACCAR maintains a solid balance sheet (current ratio ~2.98, debt/equity ~0.55) and a market cap of about $63 billion, with a P/E around 26.5 reflecting the market's valuation amid near-term demand headwinds.

PACCAR Inc. (NASDAQ:PCAR - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Investors of record on Wednesday, May 13th will be given a dividend of 0.35 per share on Wednesday, June 3rd. This represents a c) annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, May 13th. This is a 6.1% increase from PACCAR's previous quarterly dividend of $0.33.

PACCAR has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 5 years. PACCAR has a payout ratio of 19.5% meaning its dividend is sufficiently covered by earnings. Analysts expect PACCAR to earn $6.87 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 19.2%.

PACCAR Stock Performance

NASDAQ PCAR opened at $119.61 on Wednesday. The company has a fifty day simple moving average of $121.18 and a 200 day simple moving average of $114.16. PACCAR has a 12-month low of $84.65 and a 12-month high of $131.88. The company has a current ratio of 2.98, a quick ratio of 2.79 and a debt-to-equity ratio of 0.55. The company has a market cap of $62.95 billion, a P/E ratio of 26.52, a PEG ratio of 1.06 and a beta of 1.06.

PACCAR (NASDAQ:PCAR - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.02. PACCAR had a net margin of 8.35% and a return on equity of 13.97%. The business had revenue of $6.23 billion during the quarter, compared to the consensus estimate of $6.37 billion. During the same quarter last year, the firm posted $1.46 EPS. PACCAR's revenue was down 9.8% compared to the same quarter last year. Sell-side analysts predict that PACCAR will post 5.55 earnings per share for the current fiscal year.

Trending Headlines about PACCAR

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: PACCAR raised its quarterly dividend to $0.35 (a 6.1% increase vs. prior $0.33), payable June 3, signaling confidence in cash flow and returning capital to shareholders. PACCAR Increases Regular Quarterly Dividend
• Positive Sentiment: Q1 EPS of $1.15 beat consensus ($1.13) and parts and financial-services margins helped offset weaker truck volumes, supporting profitability. PCAR Q1 Earnings Surpass Estimates on Higher Parts Profit
• Positive Sentiment: Management highlighted improving production backlog and said parts and services remain strong, which can support near-term revenue stability as truck demand normalizes. PACCAR Achieves Good Financial Performance
• Neutral Sentiment: Company released the earnings slide deck and call/transcript (useful for detail on mix, margins, and order trends). Earnings Call Presentation
• Negative Sentiment: Revenue missed estimates ($6.23B actual vs. ~$6.37B expected) and was down ~9.8% year-over-year, reflecting tepid demand for new trucks and industry overcapacity — this is the primary reason selling pressure emerged. PACCAR Misses Q1 Revenue Estimates
• Negative Sentiment: Major press coverage highlights shares “plunging” after the headline revenue miss and weaker truck demand commentary, amplifying short-term downside momentum. Why PACCAR shares are plunging today
• Negative Sentiment: Reuters notes tepid demand for new trucks as an industry-wide issue, suggesting revenue and volume headwinds could persist until capacity rebalances. PACCAR's revenue falls on tepid demand

PACCAR Company Profile

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company's products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR's core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.

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