Goodyear Tire & Rubber Co (NASDAQ:GT) shares ended up 5% on Thursday - reversing much of this year’s losses - after the company increased its dividend and reaffirmed its fiscal 2016 financial targets.
Goodyear's Board said it will give a quarterly dividend of 10 cents a share of common stock, a 43% increase. The company said future dividends "will be subject to board approval."
The company also reaffirmed its financial targets, which include $3bn in annual segment operating income in 2020 and cumulative free cash flow in the range of $4.3bn to $4.9bn from 2017 to 2020.
Goodyear also updated its capital allocation plan to up to $4bn.
Goodyear shares closed up 5.1% at $32.39. The stock was down 5% in 2016.