Sonic Automotive, Inc. (NYSE:SAH) to Issue $0.41 Quarterly Dividend

Key Points

• Sonic Automotive declared a quarterly dividend of $0.41 per share, payable October 15 to shareholders of record on September 15. The dividend implies an annualized payout of $1.64 and a 1.6% yield.
• The dividend appears well covered, with a current payout ratio of 23.5% and an expected future payout ratio of 21.8%; the company has raised its dividend for four consecutive years.
• Sonic Automotive reported quarterly EPS of $1.82, exceeding analysts’ $1.75 estimate, while revenue rose 7.6% year over year to $3.93 billion. Shares closed at $100.89 after declining $11.77 during the session.

Sonic Automotive, Inc. (NYSE:SAH - Get Free Report) declared a quarterly dividend on Thursday, July 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of 0.41 per share on Thursday, October 15th. This represents a c) dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Tuesday, September 15th.

Sonic Automotive has increased its dividend payment by an average of 0.3%annually over the last three years and has increased its dividend every year for the last 4 years. Sonic Automotive has a payout ratio of 23.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Sonic Automotive to earn $7.53 per share next year, which means the company should continue to be able to cover its $1.64 annual dividend with an expected future payout ratio of 21.8%.

Sonic Automotive Stock Performance

Shares of NYSE SAH traded down $11.77 during trading on Thursday, reaching $100.89. 384,111 shares of the company traded hands, compared to its average volume of 278,872. The firm has a 50 day simple moving average of $87.78 and a 200-day simple moving average of $73.57. Sonic Automotive has a 52-week low of $54.11 and a 52-week high of $113.67. The stock has a market capitalization of $3.19 billion, a PE ratio of 32.13, a P/E/G ratio of 1.60 and a beta of 0.89. The company has a quick ratio of 0.29, a current ratio of 1.03 and a debt-to-equity ratio of 1.93.

Sonic Automotive (NYSE:SAH - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.75 by $0.07. Sonic Automotive had a return on equity of 22.45% and a net margin of 0.72%.The company had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same quarter in the previous year, the company posted $2.19 earnings per share. Sonic Automotive's revenue was up 7.6% compared to the same quarter last year. Equities research analysts anticipate that Sonic Automotive will post 6.93 earnings per share for the current year.

Sonic Automotive Company Profile

Sonic Automotive, Inc is a publicly traded automotive retailer that operates a network of franchised new-car dealerships and used-vehicle dealerships across the United States. Headquartered in Charlotte, North Carolina, the company offers a range of services that include vehicle sales, leasing, finance and insurance products, service and parts, and collision repair. Sonic Automotive's dealerships represent numerous major automotive brands, and the company also markets a broad selection of pre-owned vehicles under its own banner.

In addition to its core dealership operations, Sonic Automotive has developed digital retail capabilities that allow customers to research, shop and complete transactions online.

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