BorgWarner (BWA) Declares $0.17 Dividend

BorgWarner said on April 27, 2023 that its board of directors declared a regular quarterly dividend of $0.17 per share ($0.68 annualized). Previously, the company paid $0.17 per share.

Shares must be purchased before the ex-div date of May 31, 2023 to qualify for the dividend. Shareholders of record as of June 1, 2023 will receive the payment on June 15, 2023.

At the current share price of $48.14 / share, the stock's dividend yield is 1.41%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.70%, the lowest has been 1.28%, and the highest has been 3.22%. The standard deviation of yields is 0.29 (n=237).

The current dividend yield is 1.00 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

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What is the Fund Sentiment?

There are 1358 funds or institutions reporting positions in BorgWarner. This is an increase of 67 owner(s) or 5.19% in the last quarter. Average portfolio weight of all funds dedicated to BWA is 0.21%, an increase of 12.68%. Total shares owned by institutions decreased in the last three months by 0.37% to 261,607K shares. The put/call ratio of BWA is 0.69, indicating a bullish outlook.

Analyst Price Forecast Suggests 15.02% Upside

As of April 24, 2023, the average one-year price target for BorgWarner is 55.37. The forecasts range from a low of 42.42 to a high of $65.10. The average price target represents an increase of 15.02% from its latest reported closing price of 48.14.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for BorgWarner is 16,986MM, an increase of 7.50%. The projected annual non-GAAP EPS is 5.01.

What are Other Shareholders Doing?

Harris Associates L P holds 11,597K shares representing 4.96% ownership of the company. In it's prior filing, the firm reported owning 11,641K shares, representing a decrease of 0.38%. The firm increased its portfolio allocation in BWA by 20.18% over the last quarter.

Victory Capital Management holds 10,055K shares representing 4.30% ownership of the company. In it's prior filing, the firm reported owning 10,149K shares, representing a decrease of 0.93%. The firm decreased its portfolio allocation in BWA by 21.91% over the last quarter.

VETAX - Victory Sycamore Established Value Fund holds 7,115K shares representing 3.04% ownership of the company. No change in the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,106K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 7,018K shares, representing an increase of 1.23%. The firm increased its portfolio allocation in BWA by 19.86% over the last quarter.

Diamond Hill Capital Management holds 6,720K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 6,952K shares, representing a decrease of 3.46%. The firm increased its portfolio allocation in BWA by 17.40% over the last quarter.

BorgWarner Background Information
(This description is provided by the company.)

BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 96 locations in 24 countries, the Company employs approximately 50,000 worldwide.

This story originally appeared on Fintel.