Goodyear Tire & Rubber Outlines Growth Plan; Hikes Dividend By 43%

(RTTNews) - Goodyear Tire & Rubber Co. (GT) outlined growth plan, financial outlook. It targets $3 billion in segment operating income in 2020 and expects up to $5 billion in free cash flow through 2020. It Plans for shareholder return program of up to $4 billion, and increased dividend on common stock by 43%. It reconfirmed 2016 financial targets.

The company said, at an investor meeting today, it will discuss, among other topics, industry trends, its financial performance targets and its capital allocation plan.

The company targets $3 billion in annual segment operating income in 2020 and cumulative free cash flow of $4.3- $4.9 billion from 2017 to 2020.

Goodyear also updated its capital allocation plan that includes growth capital expenditures, restructuring, debt repayment and a shareholder return program of up to $4 billion. As part of that program, Goodyear's Board of Directors has declared a quarterly dividend of 10 cents per share of common stock, a 43 percent increase. The dividend is payable December 1, 2016, to shareholders of record on November 1, 2016. The payout represents an annual rate of 40 cents per share. Future dividends will be subject to Board approval.

Goodyear also reaffirmed its previously communicated 2016 financial targets.