Dividends

Summary of Dividends paid on Common Shares of Magna International Inc.

The table below shows the actual dividend payment amount per share for each of the applicable periods referenced. Please note the Class A Subordinate Voting Shares were re-named Common Shares on Tuesday, August 31, 2010. Please note that the Class B Shares (MG.B) were de-listed after the close of trading on Friday, September 21, 2007, and were subsequently cancelled on Tuesday, August 31, 2010.

• 2009-2024
• 2007-2008
• 2005-2006
• 2002-2004
• 1999-2001
• 1996-1998
• To 1995

*A two-for-one stock split was approved February 24, 2015.  One additional Common Share for each Common share held will be issued to each shareholder of record at the close of business March 11, 2015 and mailed to shareholders on or about March 25, 2015.

**A two-for-one stock split was approved November 4, 2010. One additional Common Share for each Common Share held will be issued to each shareholder of record at the close of business on November 16, 2010, and mailed to shareholders on or about November 24, 2010.

*** (on post-stock split basis)

The dividend payment amount per share (shown in the above table) is the actual amount paid per share and no adjustments have been made for stock splits, however, the splits are shown for clarification.

Our Board reserves the right to modify the dividend at any time and for any reason, subject to the requirements of the Corporate Constitution, particularly in response to financial, economic, operating or other relevant circumstances.

Ex-Dividend Dates

Ex-dividend dates are set by the exchanges. We do not publish ex-dividend dates for the Magna Common Shares. Currently the ex-dividend date is the second business day prior to the record date. We recommend that you always confirm this with your broker or the applicable exchange.

Magna Shareholder Guide

For registered shareholders and DRIP holders, please click HERE to download the Magna Shareholder Guide regarding the set up of your Magna online account with TSX Trust Company and Shareholder FAQs.

Dividend Reinvestment Plan

We have a Dividend Reinvestment Plan whereby registered shareholders of the Common Shares have the option to receive their dividends in the form of Common Shares in lieu of cash.

For registered shareholders and DRIP holders, please click HERE to download the Magna Shareholder Guide regarding the set up of your Magna online account with TSX Trust Company and Shareholder FAQs.

 

How does a Shareholder become a Participant in the Dividend Reinvestment Plan?

Any registered holder of Magna Common Shares may become a Participant in the DRIP at any time by completing an "Enrolment Form" and sending it to our Transfer Agent. A beneficial owner of Common Shares who is not a registered shareholder (for example, a person whose shares are held and registered in a nominee account, such as in the name of a broker) must become a holder of record by having his/her shares transferred into his/her own name or into a specific segregated registered account (for example, a numbered account with a bank or trust company with the bank's or trust company's concurrence), in order to participate in the DRIP.

If you are a Canadian registered holder of Magna Common (formerly Class A Subordinate Voting) Shares, please view the Offering Circular and letter to you. If you are not a Canadian registered shareholder, please view the Prospectus and letter to you.

Withholding Tax

Dividends on Common Shares and any special stock dividends, when payable to holders that are non-residents of Canada, are generally subject to withholding tax at a rate of 25%, unless reduced, according to the provisions of the applicable tax treaty.

We do not maintain a stock purchase plan. If you decide to invest, you must purchase shares through a broker or through an on-line trading service. A registered shareholder of the Common Shares may automatically reinvest their cash dividends in additional Magna Common Shares through our Dividend Reinvestment Plan (DRIP).

Shareholders Filing Canadian Personal Income Tax Returns

Shareholders filing Canadian personal income tax returns should be aware that certain dividends deemed to have been received or received after 2005 that are designated as "eligible dividends" under the Income Tax Act (Canada) by the paying corporation will be eligible for more favourable treatment for Canadian income tax purposes than other dividends that are deemed to have been received or received by them. Specifically, such eligible dividends will be eligible for an enhanced dividend tax credit under federal income tax legislation. Magna has determined that dividends deemed to have been received or paid after 2005 on its shares qualify to be designated as eligible dividends and therefore to benefit from the enhanced dividend tax credit regime. Accordingly, applicable to all dividends deemed to have been paid or paid by Magna on its shares for 2006 and subsequent years, unless indicated otherwise in respect of specific dividends, and until removal of this notice, Magna hereby designates all such dividends to be "eligible dividends" as such term is defined under subsection 89(1) of the Income Tax Act (Canada).

Shareholders Filing U.S. Personal Income Tax Returns

If you are a shareholder filing a U.S. personal income tax return, you should be aware that on May 28, 2003, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act") was signed into law. The Act, as amended by the Tax Increase Prevention and Reconciliation Act of 2005, reduces the rates of tax on dividends received from January 1, 2003 until December 31, 2010 from U.S. corporations and "Qualified Foreign Corporations" as defined in the Act. The determination as to whether we meet the definition of a "Qualified Foreign Corporation" must be reviewed annually. For 2007, we understand that Magna is a "Qualified Foreign Corporation". Therefore, the reduced tax rates under the Act should apply with respect to dividends paid to individual Magna shareholders subject to U.S. federal income tax. Dividends are not eligible for the reduced rates if a Magna shareholder has held the Magna share(s) for less than 61 days during the 121-day period beginning 60 days before the ex-dividend date for that dividend. Please note that the U.S. federal income tax treatment is dependent upon individual tax circumstances. Therefore, you should consult your own tax advisor regarding this or any other taxation issue.