Caution Advised Before Purchasing Dana Incorporated (NYSE:DAN) Ahead of Ex-Dividend Date
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 02 2025
0mins
Source: Yahoo Finance
Ex-Dividend Date: Dana Incorporated's stock will trade ex-dividend on November 7, meaning investors purchasing shares after this date will not receive the upcoming dividend of $0.10 per share, which will be paid on November 28.
Dividend Sustainability: The company's dividend is currently covered by both profit and cash flow, with a payout ratio of 87% of profits and 78% of free cash flow, suggesting that while the dividend is sustainable for now, future growth may be limited due to declining earnings.
Earnings Decline: Dana has experienced a significant 19% annual decline in earnings over the past five years, raising concerns about the future sustainability of its dividend and the potential for cuts if earnings continue to fall.
Investment Consideration: While Dana's dividend appears sustainable, the combination of shrinking earnings and high payout ratios makes it less attractive for long-term buy-and-hold investors, and potential buyers should be aware of the associated risks.
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Analyst Views on DAN
Wall Street analysts forecast DAN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAN is 26.60 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 29.150
Low
24.00
Averages
26.60
High
28.00
Current: 29.150
Low
24.00
Averages
26.60
High
28.00
About DAN
Dana Incorporated specializes in designing and manufacturing propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The Company is providing solutions for on-highway vehicles. The Company's technologies include drive systems (axles, driveshafts and transmissions); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding), and digital solutions (active and passive system controls and descriptive and predictive analytics). The Company serves its global light vehicle and medium/heavy vehicle markets through two business units: Light Vehicle Systems and Commercial Vehicle Systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dana Incorporated Completes $2.7 Billion Business Sale, Raises 2026 EBITDA Target to 10%-11%
- Successful Business Sale: Dana Incorporated completed the sale of its Off-Highway business for $2.7 billion, resulting in net proceeds of $2.4 billion, which enhances financial flexibility amid tariff challenges and reflects strong strategic execution.
- EBITDA Target Increase: Management raised the 2026 EBITDA target range to 10%-11%, up from the previous 10%-10.5%, indicating confidence in future profitability and potential shareholder returns.
- Cost Reduction Plan: Dana increased its cost reduction target for 2026 to $325 million, exceeding the prior target of $310 million, demonstrating ongoing efforts to optimize operational efficiency and improve margins.
- Stable Market Outlook: While 2026 sales are expected to be flat at around $7.5 billion, the company's robust $750 million backlog and focus on the North American market suggest future growth potential, particularly in the aftermarket segment.
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Dana Inc (DAN) Exceeds FY25 Expectations, Shares Surge Over 10%
- Strong Performance: Dana's preliminary FY25 sales reached $7.5 billion, exceeding the expected range of $7.3 billion to $7.5 billion, with adjusted operating income of $600 million, showcasing significant financial flexibility during its transformation.
- Share Price Surge: Following robust performance, Dana's shares surged over 10%, reflecting market optimism regarding the company's future growth potential, particularly after the sale of its Off-Highway business.
- Cost-Saving Initiatives: Dana anticipates completing its $325 million cost-reduction program in 2026 while continuing a $1 billion capital return plan, which will further enhance profitability and competitive positioning.
- Long-Term Growth Outlook: The company expects 2026 sales between $7.3 billion and $7.7 billion, surpassing the street consensus of $7.63 billion, with an anticipated $200 million in incremental new business growth from next-generation platforms, indicating sustainable long-term value creation potential.
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