Harley-Davidson(HOG) ZACKS·2025-02-17 15:10Market Overview - Wall Street is experiencing volatility due to persistent inflation, uncertainty regarding the Federal Reserve's rate-cut trajectory, and concerns over a potential trade war [1] - The auto sector faces additional challenges from potential U.S. tariffs on Canadian and Mexican imports, although these duties were temporarily paused [1] Dividend-Paying Stocks - Dividend-paying stocks are seen as a stable investment option for cautious investors seeking steady income [2] - Several auto stocks, including Harley-Davidson, Magna International, Oshkosh Corp., PACCAR, and Group 1 Automotive, have recently increased their first-quarter 2025 dividends [2] Harley-Davidson - Harley-Davidson raised its quarterly dividend by 4.3% to 3.44, reflecting a decrease of 0.485 per share, translating to a dividend yield of 5% and a payout ratio of around 35% [6] - The company is implementing restructuring and cost-cutting measures due to macroeconomic pressures, leading to a revised 2026 sales outlook [7] - The Zacks Consensus Estimate for Magna's 2025 EPS implies growth of 13% [8] Group 1 Automotive - Group 1 Automotive raised its quarterly dividend by 6.3% to 0.51 per share, yielding 1.90% with a payout ratio of around 16% [14] - The company has a strong balance sheet and is expanding its offerings through acquisitions, although it faces short-term softness in its Access segment [15] - The Zacks Consensus Estimate for Oshkosh's 2025 sales and EPS implies a decline of 2.4% and 6.6%, respectively [17] PACCAR - PACCAR increased its quarterly dividend by 10% to $0.33 per share, resulting in a dividend yield of 1.25% and a payout ratio of around 15% [18][19] - The company is poised for growth due to strong demand for its vehicles and strategic expansion initiatives, despite facing significant capital expenditures [20] - The Zacks Consensus Estimate for PACCAR's 2025 sales implies a 0.5% increase year over year, while EPS estimates suggest a 4.2% decline [21]