AKON, Ohio _ Goodyear Tire & Rubber Co. is boosting its quarterly dividend by 43 percent to 10 cents per share starting Dec. 1.
The dividend increase _ to 40 cents per share annually _ is part of the Akron tire maker's wider, multibillion dollar plan to return more money to shareholders, pay down debt, invest in the company and make other significant financial moves that it outlined in an investor conference Thursday in Boston.
The higher dividend is payable to shareholders of record as of Nov. 1.
"The tire industry is healthy, growing and offers attractive opportunities to grow profitably," Richard Kramer, chairman, chief executive officer and president, said in a statement. "Our strategy is built to take advantage of key industry drivers including the transition to increasingly complex, large-rim diameter tires and the growing influence of empowered consumers in all aspects of the tire buying process."
Goodyear reaffirmed its 2016 financial targets.
The company said it expects to have $3 billion in segment operating income in 2020 and cumulative free cash flow of $4.3 billion to $4.9 billion from 2017 to 2020.
"Our capital allocation plan demonstrates Goodyear's commitment to creating value by maintaining financial flexibility to execute our strategic plan, continuing to strengthen our balance sheet and investing for future growth while also providing significant direct returns to shareholders," Kramer said.
