Paccar Inc. (MM) (NASDAQ:PCAR)
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5 Years : From May 2011 to May 2016
--Paccar, Eaton Vance plan to issue extra cash dividends ahead of a possible U.S. "fiscal cliff" after year-end
--Tootsie Roll, Pike Electric also plan to issue special dividends this month
--Several companies are issuing extra dividends this month before possible tax increases take effect in 2013
(Adds Tootsie Roll's and Pike Electric's special dividends, updates share performance in final paragraphs.)
By Debbie Cai
Paccar Inc. (PCAR) and Eaton Vance Corp. (EV) said Tuesday they are issuing extra cash dividends, joining other companies looking to raise shareholder return ahead of the possible U.S. "fiscal cliff."
Paccar declared an extra dividend of 80 cents a share, payable on Dec. 28, citing strong results at the company. The payment will cost the manufacturer of Kenworth and Peterbilt heavy-duty commercial trucks about an extra $282 million. Paccar had about 353 million shares outstanding as of Oct. 31, according to regulatory filings.
Chief Executive Mark Pigott said good truck production world-wide, a robust aftermarket business and strong profits at the Paccar Financial Services business have driven the company's results this year.
The company also said it would issue its next regular quarterly dividend of 20 cents a share March 5.
In October, Paccar said its third-quarter earnings fell 17% as sales slid in Europe, the U.S. and Canada.
Eaton Vance's board declared a special dividend of $1 a share, payable on Dec. 20, that will cost the mutual-fund manager about an additional $115.2 million. The company had about 115.2 million shares outstanding as of July 31.
It said the special payment won't affect earnings, although earnings per diluted share might decline by about two cents in the fiscal first quarter next year.
The money manager also said it was issuing a regular quarterly dividend of 20 cents a share, payable on the same day as the special dividend.
Eaton Vance's fiscal fourth-quarter earnings rose 13% as it benefited from increased assets under management and net inflows.
Tootsie Roll Industries Inc.'s (TR) declared a per-share special dividend of 50 cents, to be paid on Dec. 28. The payment will cost the candy company about $29.3 million extra. It had about 58.6 million shares outstanding as of Sept. 29.
The company also plans to issue its regular quarterly dividend of eight cents a share on Dec. 28. Its latest quarterly dividend payment was made in October.
Pike Electric Corp. (PIKE) also plans to issue a special dividend. Its board declared it would pay $1 a share on Dec. 21 due to strong fiscal first-quarter results.
The energy solutions company will fund the dividend, costing about $35.1 million, with debt. It expects positive cash flows from operating activities during the fiscal third quarter to be used to repay the debt. It had more than 35 million in outstanding shares as of Oct. 31.
Several companies have chosen to give one-time dividends or pull their regular payouts into the current year to avoid a potential dividend-tax increase in the U.S. in 2013 should a package of spending cuts and tax hikes come into effect.
Paccar's shares were up seven cents at $43.49 after hours Tuesday. The stock has risen 21% over the past six months.
Eaton Vance's shares were down four cents at $31.72 after hours. The stock has gained 37% over the past half year.
Tootsie Roll's shares were up 1% at $28.60 after hours, while Pike's shares were up 7.1% at $10.20.
Write to Debbie Cai at email@example.com
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