Magna dividend
Magna pays $2.06 per share in the base case, rising to $2.14 and then $2.22 by October 2029. Magna's 2025 cash generation funded fixed assets, investments, debt repayment, retained cash, and shareholder payouts, while buybacks also competed for cash.
How much does Magna pay in dividends?
The base dividend rises from $2.06 per share to $2.14. It reaches $2.22 by October 2029. The bear case holds it at $1.98 before a small recovery to $2.00, while the bull case reaches $2.34. The company has raised dividends for sixteen consecutive years, but gives no numerical growth target.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 829 | 1,009 | 1,213 | 592 | 1,514 |
| EPS, diluted | 2.93 | 3.52 | 4.23 | 2.03 | 5.00 |
| Dividend per share | 1.94 | 1.90 | 1.84 | 1.80 | 1.72 |
What this means. Gross profit is not profit after every expense, because depreciation and acquired intangible amortization are left out until later.
Is Magna's dividend covered by its cash?
The pattern looked more conservative in 2025. Magna generated $3.598 billion from operating activities, spent $1.313 billion on fixed assets, and used another $499 million for investments, other assets, and intangible assets. It also repaid debt. Much of the cash was therefore retained, reinvested, or used to strengthen the balance sheet rather than distributed.
Magna then accelerated repurchases in 2026. The board authorized purchases of up to 25.3 million shares. In the first half of 2026, Magna bought 15.0 million shares for $905 million and planned to buy the remaining approximately 9 million shares in the second half. Buybacks can raise earnings per share if earnings hold up, but they compete with debt reduction, factories, and acquisitions for cash.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,285 | 1,456 | 649 | 414 | 1,568 |
| − Dividends paid | 544 | 539 | 522 | 514 | 514 |
| − Share buybacks | 137 | 207 | 13 | 780 | 517 |
| = Free cash flow not paid out | 1,545 | 664 | 40 | 488 | |
| Paid out, % of free cash flow | 29.8% | 51.2% | 82.4% | 312.6% | 65.8% |
What this means. The company's own net debt is higher because it includes operating lease obligations, while our count leaves those out.
What could change Magna's dividend?
For 2026, management guides to US$41.3–42.5 billion in sales. It targets a 6.3%–6.6% adjusted EBIT margin. Adjusted EPS guidance is US$6.70–7.30. Free cash flow guidance is US$1.75–1.85 billion. The test is whether productivity and efficiency sustain margins after tariff and EV-program recoveries fade.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 1,551 (1,053 / 1,801) | 1,602 (1,250 / 2,001) | 1,652 (1,399 / 2,198) |
| Shares (millions) | 252 (258 / 246) | 250 (258 / 237) | 247 (258 / 227) |
| Dividends per share | 2.06 (1.98 / 2.10) | 2.14 (1.98 / 2.22) | 2.22 (2.00 / 2.34) |
| Net debt | 2,596 (3,005 / 2,593) | 1,780 (2,515 / 1,518) | 879 (1,880 / 150) |
What this means. Enterprise value to normal operating profit shows how much investors are paying for each dollar of the company's normal operating profit.
What is Magna's dividend yield today?
At C$93.19 a share on October 17, 2026, investors are paying for Magna’s expected earnings recovery as well as its existing operations.