Goodyear Sets Preferred Dividend

Tire maker's preferred shares will automatically convert to common stock on April 1, 2014.

By Rich Duprey – Jun 4, 2013 at 12:29PM EST

Tire maker Goodyear Tire & Rubber (GT 4.31%) announced yesterday its second-quarter dividend of $0.7344 cents per share on its 5.875% mandatory convertible preferred stock that trades on the NYSE under the symbol GT.PRA.

The board of directors said the quarterly dividend is payable on July 1 to the holders of record at the close of business on June 14. The preferreds have a liquidation preference of $50 per share, plus an amount equal to the sum of all accrued and unpaid dividends. Each share of the mandatory convertible preferred stock will automatically convert on April 1, 2014, into between 2.7454 and 3.4317 shares of its common stock. The payout represents an annual rate of $2.9375 per share.

Goodyear, which remains one of the world's largest tire makers, does not pay a regular dividend on its common stock.

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Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Does an article needs a correction? Reach Rich here.

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Goodyear Sets Preferred Dividend

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