BorgWarner Inc.
BWAConsumer Cyclical · Stock · quarterly payer
Forward Yield
1.12%
Annual Dividend
$0.68
Payout Ratio
34%
5-Yr Growth
-1.3%
Ex-Date
Sep 1, 2026
Frequency
Quarterly
Summary
As of September 2026, BorgWarner Inc. (BWA) yields 1.12% ($0.68 per share annually), with a blended fair-value estimate of $76.52 — +21% upside, so it screens as undervalued. Dividend safety grade: C (63/100). 1 years of dividend growth.
Is BWA a good dividend stock?
Yes, with caveatsBorgWarner Inc. (BWA) pays a quarterly dividend yielding 1.12% ($0.68/yr), with 1 year of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (34%)
- 60% total price return over 5 years
Risks
- Cut its dividend in 2024
- Dividend has been shrinking, not growing
Key Data
- Dividend Yield
- 1.12%
- Payout Ratio
- 34%
- Annual Dividend
- $0.68
- 5-Yr Avg Growth
- -1.3%
- Ex-Dividend Date
- Sep 1, 2026
- Years of Growth
- 1
- Frequency
- quarterly
- Beta
- 1.10
- Market Cap
- $12.1B
- P/E Ratio
- 29.3
- 5-Yr Total Return
- 60%
- 52-Week Range
- $40.50 – $78.82
- Dividend Safety
- C · 63/100
- Ever Cut?
- Yes (2024)
Frequently Asked Questions
BWA Price — Last 12 Months
Daily close
Price Return
1 Year
+47%
3 Years
+72%
5 Years
+60%
52-Week Range
$40.50 – $78.82
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is BWA worth?
Undervaluedmedium confidenceOur blended fair-value estimate for BorgWarner Inc. is $76.52 per share, versus a market price of $63.32. That implies 21% of upside — a margin of safety of about 17%.
Fair Value
$76.52
Current Price
$63.32
Upside
+21%
Margin of Safety
17%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 9.0% annual free-cash-flow growth. We model 14.4% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.8% discount rate (CAPM), 14.4% stage-1 growth, 2.5% terminal growth, $2.03 EPS, $0.68 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
BWA Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
Full BWA dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 1, 2026 | — | $0.1700 | regular |
| Jun 1, 2026 | — | $0.1700 | regular |
| Mar 2, 2026 | — | $0.1700 | regular |
| Dec 1, 2025 | — | $0.1700 | regular |
| Sep 2, 2025 | — | $0.1700 | regular |
| Jun 2, 2025 | — | $0.1100 | regular |
| Mar 3, 2025 | — | $0.1100 | regular |
| Dec 2, 2024 | — | $0.1100 | regular |
| Sep 3, 2024 | — | $0.1100 | regular |
| Jun 3, 2024 | — | $0.1100 | regular |
| Feb 29, 2024 | — | $0.1100 | regular |
| Nov 30, 2023 | — | $0.1100 | regular |
| Aug 31, 2023 | — | $0.1100 | regular |
| May 31, 2023 | — | $0.1496 | regular |
Income Calculator
At $0.68 / yr per share
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