Lithia & Driveway Boosts Dividend Amid Strong Q1 Results

Published 1 hours agoLAD

Lithia & Driveway Boosts Dividend Amid Strong Q1 Results

Lithia & Driveway (NYSE: LAD) has announced an increase in its quarterly dividend to $0.55 per share for the first quarter of 2025, marking a rise of 3.8% to 4% from its previous dividend payment. The dividend will be distributed to shareholders on record as of May 9, 2025, with a payment date set for May 23, 2025. This move underscores the company's robust financial health and commitment to shareholder returns.

The dividend hike follows a strong financial performance in the first quarter, with Lithia reporting a 7% year-over-year rise in revenue, reaching $9.2 billion. This growth was driven by a 9.1% increase in new vehicle sales and improved margins in aftersales operations. Net income for the quarter increased by 28% to $211 million, and diluted earnings per share surged 35% to $7.94, demonstrating the company's operational efficiency and their scale advantages.

Lithia & Driveway maintains a low payout ratio of approximately 6.53% relative to earnings, suggesting potential for further dividend growth. Besides increasing dividends, the company has been actively repurchasing shares, buying back around 403,000 shares in Q1 2025 with $669.2 million still available under the current share repurchase authorization. According to Insider Monkey, Lithia is recognized as the world's largest automotive retailer, offering a comprehensive range of products and services spanning the vehicle ownership lifecycle through various channels including e-commerce.

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