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  5. MG: How safe do you think Magna’s dividend is? [Magna International Inc.]

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Q: How safe do you think Magna’s dividend is?

Current earnings/cash flow seem to cover the dividend quite well, and buybacks could always be stopped/reduced if needed to maintain the dividend.

Even if it takes a few years for the auto industry to recover, Magna’s over 5% dividend yield at least pays us to be patient (assuming Magna can adapt to whatever the future of the auto industry looks like)?
Asked by Patrick on March 31, 2025
5i Research Answer:
While no dividend is guaranteed, MG is in decent shape. Payout ratio based on operating cash...
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