Paccar Lifts Dividend 11%, Citing Strong Results
First Published Tuesday, 24th April 2012 10:48 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
Paccar Inc. (PCAR) raised its quarterly dividend 11% in a nod to its streak of stronger operating results, joining the array of companies that have boosted payouts to shareholders in recent months.
The two-cent increase, to 20 cents a share, will cost the truck maker about $28.6 million more each year.
The maker of Kenworth and Peterbilt commercial trucks has seen its profits surge in recent quarters on sharply higher truck sales revenue in the U.S. and Canada, as well as growth at its financial services unit.
Chairman and Chief Executive Mark Pigott said the increase reflected the company's recent results, pointing to higher earnings driven by stronger commercial-vehicle demand in North America as well as revenue growth from financial services assets and aftermarket sales.
Paccar has paid a dividend every year since 1941.
Shares closed at $42.23 Tuesday and were inactive after hours. The stock is off 21% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com