Goodyear Tire's Stock Surges After Dividend Hike

Shares of Goodyear Tire & Rubber Co. surged 3.5% in premarket trade Thursday, after the tire company boosted its quarterly dividend by 43%. The new dividend of 10 cents a share, up from 7 cents a share, will be payable Dec. 1 to shareholders of record on Nov. 1. Based on Wednesday's closing price for the stock of $30.81, the new annual dividend implies a dividend yield of 1.30%, compared with the aggregate S&P 500 dividend yield of 2.15%, according to FactSet. The dividend hike is part of Goodyear's capital allocation plan, which includes capital expenditures, debt repayment, shareholder returns and restructuring of up to $4 billion. The stock has lost 5.7% year to date through Wednesday, while the S&P 500 has gained 4%.