Company’s First Dividend Hike Is A 33% Increase
An up-and-coming company is very interesting for dividend investors.
The stock just started paying dividends in January 2025.
And it’s now making its first dividend increase.
You’ve probably never heard of Garrett Motion (ticker: GTX).
It’s flying under the radar for many investors.
And its industry doesn’t get a lot of press.
Garrett is a parts manufacturer for gas and diesel vehicles.
In particular, Garrett produces turbochargers to improve the fuel efficiency of cars and trucks.
It may not sound exciting, but it’s a really important industry.
Electric vehicles (EV) get all of the attention, but gas-powered vehicles aren’t going extinct.
Plus, Garrett is developing products used in zero-emission engines for electric and hydrogen fuel cell vehicles.
Garrett’s stock only started trading in 2018 after it split from Honeywell (ticker: HON).
But Garrett has been producing turbochargers since the 1950s!
Garrett’s stock price has zoomed since the tariff crash in April.
Its stock price is up almost 130% in just over 6 months!
Let’s talk about Garrett’s dividend.
The dividend is small at only $0.06 per quarter.
But Garrett just started paying dividends, so the low amount is understandable.
Garrett’s next payment is up to $0.08 per share, which is a 33% increase.
You need to own Garrett stock by November 28 (Friday) to get the higher payment.
And don’t forget about Thanksgiving later in the week.
It means the stock market is closed on Thursday and is only open on Friday from 9:30-1:00 EDT.
So don’t wait until the last minute because the stock market might be closed!
You’d think the dividend yield would be miniscule with only a $0.08 dividend payment, but Garrett’s dividend yield is around 2%.
Its stock price is only $17.
So you don’t need a lot of money to buy a bunch of shares.
And the share price isn’t the only low figure for Garrett.
Garrett is only paying 13% of its free cash flow out in dividends.
So there’s plenty of room to grow its payments.
Plus, Garrett’s price-to-earnings ratio is only 10.7x, which is half the industry average.
And when you throw in Garrett’s industry-leading 9.2% profit margin, you realize Garrett is really special.
You’ll need to be patient for Garrett to get those dividend payments higher.
But Garrett seems like a great sleeper pick for dividend investors.
And nobody’s talking about it!
Have you ever bought a company just starting its dividend journey?
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?
