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Penske increases quarterly dividend by 7 percent

BLOOMFIELD HILLS, Mich. (AP) -- Penske Automotive announced a 7 percent dividend hike on Wednesday.

The retailer's new dividend of 16 cents per share is payable Sept. 3 to shareholders of record as of Aug. 12.

Penske CEO Robert Kurnick said that the company is confident in its ability to grow its business, based on its recent financial performance and the strong automotive retailer environment in the U.S. and the U.K.

In addition to its retail stores, the Bloomfield Hills, Mich., company does vehicle maintenance, repair and other services.

Shares of Penske Automotive Group Inc. added 12 cents to reach $33.44 by midday, in line with broader market movement. Its stock remains at the upper-end of its 52-week trading range of $22.45 to $34.34.