Sonic Automotive hikes dividend by 3.6%

Sonic's Board of Directors approved a 3.6% increase to the Company's quarterly cash dividend, to $0.29 per share, payable on July 14, 2023 to all stockholders of record on June 15, 2023. The dividend yield for SAH is 2.52% at a stock price of $44.52.

Heath Byrd, Chief Financial Officer of Sonic Automotive, added, “Our diversified business model continues to allow us to focus on the long-term growth potential at EchoPark and our powersports business, while utilizing the cash flows from our franchised dealerships business to support our capital strategy via our dividend and share repurchases while continuing to invest in the business. We are increasingly focused on our disciplined, return-based capital allocation in the face of an uncertain macroeconomic outlook. As of March 31, 2023, we had $893 million of liquidity, including $432 million in cash and floor plan deposits on hand, which we believe provides us flexibility to strategically deploy capital in 2023 and beyond to continue to deliver long-term returns for our stockholders.”

Sonic Automotive, Inc. is an automotive retailer. The company represents approximately 25 different car brands with the majority of our dealerships being luxury and import brands. Sonic Automotive also operates collision repair centers and pre-owned vehicle stores. SAH, based in Charlotte, N.C., became a public company in 1997.