Goodyear Board Eliminates Dividend
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At a time when more investors are looking for companies that pay cash dividends, Goodyear Tire & Rubber Co. is eliminating its payout.
North America’s largest tire maker said Tuesday that its board decided to halt dividend payments for the first time in 66 years, saving about $84 million annually to help stem losses.
Goodyear’s NYSE-traded shares plunged 17% -- shedding 87 cents to $4.30 -- their biggest one-day percentage drop since October 1987. The stock has tumbled from $21 a year ago as the company’s financial woes have mounted.
Akron, Ohio-based Goodyear had paid a 12-cents-a-share quarterly dividend for the last five quarters, after reducing it from 30 cents in October 2001. The tire maker had paid dividends since 1937.
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