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PACCAR Announces $300M Share Repurchase & Dividend Payout

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FFIV vs. ZEN: Which Stock Should Value Investors Buy Now?

FFIV vs. ZEN: Which Stock Is the Better Value Option?

On Jul 9, PACCAR Inc.’s PCAR shares have risen roughly 1.5% to $61.84. On the same day, the company’s board has approved repurchasing an additional $300 million worth of common shares and declared a quarterly dividend of 28 cents per share. The dividend will be paid on Sep 5 to shareholders as of Aug 14, 2018.

Per management, the company’s increasing profits and positive cash flow help it to offer good returns to its shareholders. In the last fifteen years, PACCAR has returned an average of 12.5% to its shareholders compared with 9.5% by the S&P 500 Index.

Since 1941, the company has been paying regular quarterly dividends to its shareholders. Earlier, in May 2018, PACCAR raised its quarterly cash dividend by 12% to 28 cents per share from the previous payout of 25 cents.

PACCAR Inc. Price and Consensus

 

PACCAR Inc. Price and Consensus | PACCAR Inc. Quote

The company is a leading heavy-duty truck manufacturer in the world and has a substantial manufacturing exposure to light/medium trucks. It also provides customer support for its products by supplying aftermarket parts as well as finance and leasing services.

Price Performance

In the past three months, PACCAR’s stocks have underperformed the industry it belongs to. During the period, the company’s stock has lost 7.7% compared with the industry’s gain of 1.3%.

Zacks Rank & Stocks to Consider

Currently, PACCAR carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Autoliv, Inc. ALV, American Axle and Manufacturing Holdings, Inc. AXL and CarMax, Inc. KMX. Autoliv sports a Zacks Rank #1 (Strong Buy) while American Axle and CarMax carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Autoliv has an expected long-term growth rate of 12.7%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 14.4% upward over the past 30 days.

American Axle has an expected long-term growth rate of 8.1%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 1.3% upward over the past 60 days.

CarMax has an expected long-term growth rate of 14.8%. The company’s stock has seen the Zacks Consensus Estimate for annual earnings being revised 3% upward over the past 30 days.

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