In a rare move for the company this decade, Goodyear Tire & Rubber Co. announced that it would pay a dividend to certain shareholders.
The quarterly dividend of 74.25 cents per share will go to holders of mandatory convertible preferred stock. The dividend is payable July 1, to shareholders of record on June 15, and represents an annual rate of $2.9375 per share.
According to analysts, preferred stock usually pays a specified dividend, but carries no voting rights. As this preferred stock matures, it will convert to regular shares by April 2014.
Goodyear stopped paying dividends on regular shares in 2003 as part of its effort to weather a financial crisis.