As the effects of the great recession took hold upon the American consumer, other segments of the car trade also stood to benefit, namely the auto dealership industry. As credit- and cash-strapped consumers increasingly looked for automotive bargains, used car sales jumped 4.4% from 2011 to 2012 causing a boon for the auto dealerships as margins on sales of used cars are much higher than sales of new cars.
In fact, Warren Buffett, capitalizing on this trend, just announced earlier this year that Berkshire Hathaway is buying Van Tuyl Group, the fifth-largest car dealership company in the U.S. If that’s not an endorsement of the sector then I don’t know what is. With that being said, let us examine some of the dividend paying auto dealership stocks that might add a little diversity to your dividend portfolio:Penske Automotive Group, Inc. (NYSE:PAG), Lithia Motors Inc. (NYSE:LAD), Group 1 Automotive Inc. (NYSE:GPI) and Sonic Automotive Inc. (NYSE:SAH).
Source: Seeking Alpha
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