Goodyear Boosts Dividend

Goodyear Tire & Rubber Co. said Thursday that it would return up to $4 billion to shareholders and boosted its dividend, as the tire maker faces an activist investor.

Goodyear said it would increase its quarterly dividend to 10 cents a share, up from 7 cents previously. The company also reaffirmed its previously issued 2016 financial guidance.

Activist investor Marcato Capital Management LP has pushed Goodyear to return $4.5 billion to investors over the next three years in a bid to boost the tire giant's flagging stock price.

In a letter to the Goodyear's board earlier this month, the activist hedge fund says it has been "impressed" by Goodyear's management and recent performance, but lamented its then languishing stock.

Shares rose 2.9% in premarket trading and were already up 5% this month.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

September 15, 2016 09:55 ET (13:55 GMT)

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