Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, May 30, 2014

Article Excerpt

GOODYEAR TIRE & RUBBER, $26.37, symbol GT on New York, is the world’s largest tire maker, with 51 plants in 22 countries. This week, the company announced that it will build a new tire plant in either North or South America. The facility will produce six million tires a year and help Goodyear meet rising demand for high-performance tires in both regions. Goodyear expects to spend $500 million on this facility, which could start up in 2017. To put that in context, Goodyear’s 2013 cash flow was $407.0 million. The company also announced several moves aimed at increasing shareholder value, including a 20.0% increase in its quarterly dividend, to $0.06 a share from $0.05, starting with the September 2014 payment. The new annual rate of $0.24 yields 0.9%. In addition, Goodyear plans to buy back up to $450 million worth of shares by the end of 2016, up from its earlier goal of $100 million. Share buybacks raise earnings per share and other per-share…