Tuesday Ticker: Boyd Group announces Q1 cash dividend, Magna feels effects of rising interest rates

Toronto, Ontario — In this weekly Tuesday Ticker, Boyd Group announces a cash dividend for the first quarter of 2023 and rising interest rates, among other macroeconomic factors, put strain on Magna stocks.

Betting on Boyd

Boyd Group announced Friday a cash dividend for the first quarter of 2023 of $0.147 per common share.

The auto repair group’s press release specified that the dividend will be payable on April 26 to common shareholders of record at the close of business on March 31.

As of press time, Boyd was trading on the TSX at $218.28 per share, down 3.47 percent.

A changing tide

Auto industry analysts are pointing to macroeconomic factors, like rising interest rates, as the culprits behind Magna International’s less-than-stellar recent showings on the trading room floor.

According to analysis from the Motley Fool, rising interest rates are seriously cutting into the sales performance of the Ontario-based auto parts manufacturer, with the last quarter’s 5 percent sales increase paling in comparison to gains of more than 15 percent ten years ago.

One expert said of the company, “Trading at 11 times this year’s expected earnings, Magna’s stock price is nowhere near attractively valued at this time. This is true especially considering that I believe that Magna’s earnings estimates have significant downside risk.”

As of press time, Magna stocks on the TSX are down 0.2 percent at $68.71 per share.


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