Boston, MA 10/08/2014 (wallstreetpr) – The Goodyear Tire & Rubber Company (NASDAQ:GT) disclosed that its Board of Directors has given its approval for the payment of a quarterly cash dividend of six cents share to all the eligible shareholders. Effectively, it maintained its dividend rate for the second straight quarter.
The company was not in the dividend paying list for a decade till October 2013. As a result, there was no growth in average dividend rate for the five-year period.
Payment Of Dividend
The company stated that it fixed October 31 as the record date to find out the eligible shareholders name, its statement revealed. It said that it would pay a dividend on December 1 to all the qualified shareholders.
The current dividend rate works out to 24 cents a share on a yearly basis. On October 29, the stock would become ex-dividend. The latest dividend provided a yield of 1.10%. Since there was no dividend before one year, dividend yield for the average five-year period was not available. However, the estimated ten-year average dividend yield was also 1.10%.
The latest dividend rate represented a payout ratio of 11.00%. This meant that the company is preserving cash to be used for general corporate purposes, including working capital.
Dividend History
According to Nasdaq data, The Goodyear Tire & Rubber Company (NASDAQ:GT) was paying a dividend of 30 cents a share in 2000 and maintained it till August 2001. However, it slashed its dividend to 12 cents a share in November 2001 and paid the same till November 2002. Thereafter, the company was not in the dividend paying list at all for a decade though it started paying a dividend since 1990.
It was only in October 2013 The Goodyear Tire & Rubber Company (NASDAQ:GT) came back on the dividend paying list. It started to pay a dividend of five cents a share for three quarters till April this year. The company increased the dividend to six cents a share in July current year. As a result, there was no growth in average dividend for the last five-year period.
