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Lithia Motors Inc. (LAD) logo

Lithia Motors Inc.

S&P 500

LAD/Consumer Cyclical · Auto & Truck Dealerships/NYSE

Dividend Yield

0.75%

$2.22 · Annual Dividend

Stock Price$296.73P/E10.3MCap6.7BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

69/ 100Safe

LAD's dividend appears safe and well-supported. Strengths include a 7.7% earnings payout ratio & 12.0% fcf payout ratio. Areas of concern: 2.4x interest coverage & 60.3% net debt / total assets. The dividend has been growing at a 12.31% 5-year CAGR.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 7.7%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 12.0%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 10.7%Operating cash flow strongly supports the payout.

Risks

  • Interest Coverage: 2.4xInterest coverage is thin relative to debt servicing.
  • Net Debt / Total Assets: 60.3%Net debt is high relative to total assets.
  • Current Ratio: 1.0xLimited short-term liquidity to meet obligations.

Payout & Coverage

Safe
12.0%Very Safe
10.7%Very Safe

Balance Sheet

Warning
1.0xWarning
251.7Caution

Profitability

Caution
10.9%Caution
3.6%Warning
15.3%Warning

Dividend Track Record

Very Safe
11+ yrsVery Safe
NoneVery Safe
12.3%Very Safe
GrowingVery Safe

About Lithia Motors Inc.

Lithia Motors Inc. is a prominent player in the automotive retail industry, operating as one of the largest advisors and providers of vehicles and related services across the United States. Specializing in the retailing of new and used vehicles, Lithia Motors Inc. runs a network of dealerships that offer a wide array of automotive products and services. This includes the sale of new and pre-owned vehicles, financial services such as loans and leases, and repair and maintenance services. Additionally, the company facilitates the sales of automotive parts and insurance products. The organization's expansive reach serves a diverse range of customers from individual buyers to commercial fleets, highlighting its role as a crucial intermediary in the automotive market. Lithia Motors Inc. significantly impacts sectors including transportation, finance, and consumer services, driven by their comprehensive customer-focused strategies. With a firm presence in the market, Lithia Motors Inc. continues adapting to evolving trends in vehicle technology and consumer preferences, maintaining significant importance in the automotive retail landscape.

Dividend Overview

Dividend Yield

0.75%

Annual Dividend

$2.22

Frequency

Quarterly

Payout Ratio

7.68%

FCF Payout Ratio

11.96%

52-Week Range

$239.78 - $360.56

Dividend History (2016–2025)

LAD annual dividend per share and yield history

Earnings & Profitability

LAD earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

May 8, 2026

Last Payment Date

May 22, 2026

Dividend Growth

3-Year Dividend CAGR

10.63%

5-Year Dividend CAGR

12.31%

10-Year Dividend CAGR

11.11%

3-Year Total Growth

35.40%

5-Year Total Growth

78.69%

10-Year Total Growth

186.84%

Income Calculator

LAD Dividend Calculator

Total Investment

$29,673.00

Annual Income

$222.00

Quarterly Income

$55.50

Monthly Income

$18.50

Frequently Asked Questions

What is LAD's current dividend yield?
Lithia Motors Inc. (LAD) currently has a dividend yield of 0.75%, based on a stock price of $296.73 and an annual dividend of $2.22.
When is LAD's next dividend payment date?
LAD's next ex-dividend date is 2026-05-08 and the next payment date is 2026-05-22. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does LAD pay in dividends per year?
Lithia Motors Inc. paid $2.18 per share in annual dividends in 2025. The dividends are paid quarterly.
Has LAD been increasing its dividend?
Lithia Motors Inc. has grown its dividend at a 5-year CAGR of 12.31% and a 10-year CAGR of 11.11%.
Is LAD's dividend safe?
Lithia Motors Inc. has a payout ratio of 7.68%. Its free cash flow payout ratio is 11.96%. A payout ratio below 60% is generally considered sustainable.
How is LAD's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Lithia Motors Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for consumer cyclical companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.