Pinnacle Foods Inc.'s raised on Wednesday its quarterly dividend by 8.5% to 25.5 cents a share, effective in the third quarter. The new dividend will be payable on Oct. 9 to shareholders of record as of the close of business on Sept. 28. At Tuesday's closing price of $44.63, the new dividend would represent an annual yield of 2.3%, compared with the S&P 500 dividend yield of 2.2%, according to FactSet. "This dividend increase, which marks the third rate increase we've taken since initiating our quarterly dividend program shortly after our IPO in March 2013, reflects the ongoing strength of our cash flow performance and our continued confidence in our business model," said Chief Executive Bob Gamgort. Shares of the company, which brands include Birds Eye frozen foods and Hungry-Man frozen dinners, were still inactive in premarket trade. They have gained 4.5% over the past three months, while the S&P 500 has lost 5.6%.
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