Pensky Automotive reinstates dividend of 42 cents a share

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Penske Automotive Group Inc. said Wednesday that it was reinstating its dividend. The auto and truck dealer declared a quarterly dividend of 42 cents a share, payable Dec. 1 to shareholders of record on Nov. 10. That’s the same as last quarterly dividend paid was 42 cents a share in February. The company said in May that it was suspending its dividend, as it looked to preserve cash amid uncertainties regarding the effects of the COVID-19 pandemic. “The actions we took to mitigate the impact of Covid-19, coupled with the improvement in business conditions in the third quarter, were instrumental in our ability to preserve liquidity and repay $300 million in Senior Subordinated Notes in August, at their maturity,” said Chairman Roger Penskey. “I am confident in the strength of our financial position and our ability to reinstate the dividend at this time.” The stock, which was still inactive in premarket trading, has gained 6.0% year to date while the S&P 500 has advanced 8.7%.
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