CAR Group’s (ASX:CAR) Upcoming Dividend Will Be Larger Than Last Year’s

Simply Wall St

Thu, February 12, 2026 at 5:02 AM GMT+9 3 min read

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CAR Group Limited (ASX:CAR) has announced that it will be increasing its dividend from last year’s comparable payment on the 13th of April to A$0.425. This will take the annual payment to 3.1% of the stock price, which is above what most companies in the industry pay.

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

CAR Group’s Future Dividend Projections Appear Well Covered By Earnings

A big dividend yield for a few years doesn’t mean much if it can’t be sustained. Based on the last payment, CAR Group’s profits didn’t cover the dividend, but the company was generating enough cash instead. Generally, we think cash is more important than accounting measures of profit, so with the cash flows easily covering the dividend, we don’t think there is much reason to worry.

Looking forward, earnings per share is forecast to rise by 60.8% over the next year. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 72% which would be quite comfortable going to take the dividend forward.

ASX:CAR Historic Dividend February 11th 2026

Check out our latest analysis for CAR Group

CAR Group Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2016, the annual payment back then was A$0.339, compared to the most recent full-year payment of A$0.85. This means that it has been growing its distributions at 9.6% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

CAR Group’s Dividend Might Lack Growth

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. CAR Group has seen EPS rising for the last five years, at 12% per annum. However, the payout ratio is very high, not leaving much room for growth of the dividend in the future.

Our Thoughts On CAR Group’s Dividend

In summary, while it’s always good to see the dividend being raised, we don’t think CAR Group’s payments are rock solid. The company has been bring in plenty of cash to cover the dividend, but we don’t necessarily think that makes it a great dividend stock. We don’t think CAR Group is a great stock to add to your portfolio if income is your focus.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we’ve picked out 2 warning signs for CAR Group that investors should know about before committing capital to this stock. Is CAR Group not quite the opportunity you were looking for? Why not check out our **selection of top dividend stocks. **

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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