Recent Sell – Magna International

Magna International

Another sale from my portfolio. Regular readers may be aware that I have been liquidating a lot of my portfolio as this market enters the nosebleed section. Valuations are at all-time highs and the world of finance looks just as dangerous as last decade, if not worse. I am of the opinion that holding large positions of cash going into the next crisis is a better strategy than trying to stay invested and trying to squeeze out an extra 1% or 2% in dividends or capital gains.

I sold 50 shares in Magna International Inc (MG.TO) @ C$57.00 and closed my position.

Continue reading

Magna International Dividend Increase

Magna International

Magna International Inc (MG.TO)(MGA) announced a dividend increase of 13.64%. The quarterly dividend increases from US$0.22 to US$0.25 per share and payable on Mar 24 2016, to shareholders of record on Mar 11, 2016.

Even though Canadian, the company reports all its financials (including dividend declaration & issuance) in US$.

Magna is a Dividend Challenger and this is the 7th consecutive dividend increase from the company. The annual dividend amount increases from US$0.88 to US$1.00. Yield going forward is 2.82%.

From the earnings release statement:

Vince Galifi, Magna’s Chief Financial Officer, stated: “Our quarterly dividend of $0.25, an increase of 14%, represents a record dividend rate for Magna. This is the sixth straight year of dividend increase in the fourth quarter, reflecting our commitment to returning capital to shareholders and the ongoing confidence our Board has in Magna’s future.”

Our portfolio consists of 50 shares of Magna International, which increases our annual dividends from US$44.00 to US$50.00, an increase of US$6.00.

Magna International Dividend Increase and Stock Split

Magna International

Magna International Inc (MG.TO)(MGA) announced a dividend raise from a quarterly amount of US$0.38 to US$0.44, an increase of 16%. The new dividend is scheduled to be paid Mar 27, 2015 for shareholders on record on Mar 13, 2014. In addition, Magna announced that the stock will be split two-for-one. The stock split will occur before the new dividend payment (so, dividend payment amount will be US$0.22 post split), on Mar 25, 2015 to shareholders on record at the close of business on Mar 11, 2015.

Continue reading

Recent Buy – Magna International

Magna International My first purchase of 2015! I added to my position in Magna International Inc (MG.TO) (MGA). Magna is a globally diversified automotive supplier headquartered in Aurora, Ontario, Canada.  In 2012 it was the largest automobile parts manufacturer in North America by sales of original equipment parts. Its operating groups include Magna Steyr, Magna Powertrain, Magna Exteriors, Magna Interiors, Magna Seating, Magna Closures, Magna Mirrors, Magna Electronics and Cosma International. Customers include General Motors (GM), Ford Motor Company (F), Chrysler LLC, Tesla (TSLA), BMW, Mercedes-Benz, Audi, Volkswagen, Land Rover, Toyota, and Honda to name a few (the customer list is too long from different divisions to include all names).

Because all numbers reported by Magna Internatonal are in US$, this article unless otherwise specified uses US$. However, for my investment, I bought the Canadian listed stock (MG.TO) to avoid currency conversion hits. I added 10 shares of MG.TO to my portfolio (bringing my total to 25 shares) at a price of CAD$123.50, which adds (approx, because dividends are declared in US$, but converted when payed out for the Canadian listed stock) $17.20 to my FY annual dividends.

Continue reading

Recent Buy – Magna International

Magna International One of my favorite series of posts is when I add more capital to work and introduce a new stock to my portfolio. Here is my recent buy: I initiated a position in Magna International Inc (MGA) (MG.TO). Magna is a globally diversified automotive supplier headquartered in Aurora, Ontario, Canada.  In 2012 it was the largest automobile parts manufacturer in North America by sales of original equipment parts. Its operating groups include Magna Steyr, Magna Powertrain, Magna Exteriors, Magna Interiors, Magna Seating, Magna Closures, Magna Mirrors, Magna Electronics and Cosma International. Customers include General Motors (GM), Ford Motor Company (F), Chrysler LLC, Tesla (TSLA), BMW, Mercedes-Benz, Audi, Volkswagen, Land Rover, Toyota, and Honda to name a few (the customer list is too long from different divisions to include all names).

The company was founded by the Austrian-Canadian businessman and politician Frank Stronach. As of last year, he was ranked 19th wealthiest Canadian with a net worth of CAD $3.12B. Stronach founded the company in a Toronto garage in 1957, was chairman and CEO for decades and began the transition process to hand over the reigns in 2010 after a controversial $860M buyout of the multiple voting shares with which he controlled the company. In 2013, Magna paid him $52M (2.25% of Magna’s pre-tax profit) for consulting work and has indicated that 2014 will be the last year they will have him on the payroll. The company is now headed by Donald Walker, who has been in the industry for 34 years and with Magna  for 27 years.

Because all numbers reported by Magna Internatonal are in US$, this article unless otherwise specified uses US$. However, for my investment, I bought the Canadian listed stock (MG.TO) to avoid currency conversion hits.

Continue reading