Hi Dan,Mat, what’s your opinion on MG stock? Potential growth in 2024, dividend safe ?

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Asked on November 19, 2023 7:53 pm
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Hey there,
The autoparts industry is very cyclical but we still believe that MG is best in class. If one is looking for exposure in this area, then MG would be one of the first stocks I'd be looking at.

I don't see any issue with the dividend so far. Payout ratio is only 48% of earnings and 20% of Operating cash flow. It does account for more than 100% of FCF, but that is due in large part to an increase in capital spending this year to support future growth. That was expected and their investments this year were higher than average. WIth that in mind, I don't see any issue with the sustainability of their dividend at these levels.

Mat

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Posted by Mathieu Litalien
Answered on November 20, 2023 8:43 am
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Thanks Mat for the info.
(Jean-François Larente at November 20, 2023 12:44 pm)