DANA Inc Raises Quarterly Dividend 20% to $0.12 Per Share

DANA Inc (NYSE: DAN), a supplier of drivetrain and propulsion systems for light and commercial vehicles, increased its quarterly cash dividend by 20% to $0.12 per share from the previous $0.10 per share. The company is targeting approximately $50 million in annual dividend distributions. Read more dividend announcements.

The dividend increase follows a significant year of shareholder returns. In 2025, DANA returned $704 million to shareholders, comprising $650 million in share repurchases and $54 million in dividends. The company repurchased 34 million shares during the period, representing 23% of shares outstanding.

Specific dates for the dividend payment were not disclosed in the announcement. Current shares outstanding stand at approximately 109 million following the buyback program.

Capital Allocation and Share Repurchase Program

DANA authorized $2 billion in capital returns through 2030, with repurchase authorization extending through the end of the decade. The company has already repurchased approximately $115 million in shares during 2026 and expects to reach the high end of its guidance range for the year.

The enhanced dividend and ongoing buyback program are part of a balanced capital allocation strategy that the company says will support organic growth while returning capital to shareholders. Historical capital allocation from 2021 through 2025 totaled $1.9 billion, while future allocation from 2026 through 2030 is targeted at approximately $4 billion, excluding share repurchases funded by divestiture proceeds in 2025.

Financial Outlook and Strategic Targets

DANA provided long-term financial targets through 2030 as part of its strategic roadmap. The company projects sales reaching approximately $10 billion, representing a 6% compound annual growth rate. Adjusted EBITDA margin is expected to improve to 14% to 15%, an increase of approximately 400 basis points over 2026 expectations of 10.5%.

Adjusted free cash flow margin is targeted at approximately 6%, representing a 200 basis-point improvement. The company expects an 11% compound annual growth rate in free cash flow generation through 2030, driven by improved profit conversion, lower interest expense, and enhanced working capital efficiency.

Pre-tax return on invested capital is projected to reach approximately 15%, up from current levels, as the company maintains investment discipline with capital expenditures and research and development spending targeted at 6.7% of sales. R&D figures include engineering expenses.