PACCAR (PCAR) Hike Dividend, Boosts Shareholders' Value
Zacks Investment Research | Dec 07, 2016 06:04AM ET
PACCAR Inc. (NASDAQ:PCAR) announced an extra cash dividend of 60 cents per share. This dividend will be paid on Jan 6, 2017, to shareholders on record as of Dec 16, 2016. The board of directors also declared a quarterly dividend of 24 cents per share. The dividend will be paid on Mar 7, 2017, to shareholders on record as of Feb 14, 2017.
PACCAR has a robust financial position and promising long-term business prospects, which have allowed it to effectively deploy capital since 1941. In Dec 2015, PACCAR announced an extra cash dividend of $1.40 per share. The additional dividend reflects management’s confidence in the business. In the last six years, the company’s regular quarterly dividend payout has increased more than 165%.
Price Performance
PACCAR has outperformed the Zacks categorized Auto Manufacturers-Domestic industry in the last three months driven by benefits from a sizeable market share in the U.S. and Canada along with active capital deployment. The company’s expansion plans as well as rising European sales also drove the share price. The company’s shares have increased 12.07% in the last three months, compared with a 3.78% hike recorded by the industry.
Zacks Rank & Key Picks
Currently, PACCAR carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the auto space include Allison Transmission Holdings, Inc. (NYSE:ALSN) , America's Car-Mart Inc. (NASDAQ:CRMT) and Rush Enterprises, Inc. (NASDAQ:RUSHA) .
Both Allison Transmission and America's Car-Mart sport a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
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