Paccar raises dividend, to boost yield above 1.2%

Shares of Paccar Inc.
PCAR,
+1.18%
surged 1.7% into record territory in morning trading Tuesday, after the truck maker raised its quarterly dividend by 8%. The company said it will pay a quarterly dividend of 27 cents a share on Sept. 7 to shareholders of record on Aug. 17. Based on current share prices, the new annual dividend rate implies a dividend yield of 1.26%, which compares with the yield for the Industrial Select Sector SPDR exchange-traded fund
XLI,
+0.70%
of 1.57% and the implied yield for the S&P 500
SPX,
+0.29%
of 1.55%. “Paccar is achieving record business results in its truck markets worldwide,” said Executive Chairman Mark Pigott. “Paccar has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years.” Paccar shares have soared 30.4% year to date, while the S&P 500 has advanced 15.1%