BUY Conviction3/5 Analysis quality78/100 now
The YouTuber suggests Magna International, a comprehensive automotive component manufacturer, as a buy. Despite recent auto sales dips, the company generated significant free cash flow and increased its dividend for 15 consecutive years. A rebound in car sales and a low payout ratio (30%) are expected to drive 26% annual earnings growth and a 28% increase in payout over the next three years.
“A 28 increase in the payout now that takes the current dividend from 1.84 up to 3.85 cents a share or a 7.4 yield on the current stock price.”