Paccar raises dividend, to boost yield above the S&P 500’s implied yield

Paccar Inc. PCAR, -2.58% said Tuesday it will raise its quarterly dividend by 8.8%, 37 cents a share from 34 cents a share. The maker of trucks, under brands including Kenworth and Peterbilt, said the new dividend will be payable Dec. 6 to shareholders of business on Nov. 15. The stock fell 2.5% in afternoon trading. Based on current stock prices, Paccar’s new annual dividend rate implies a dividend yield of 1.70%, which compares with the implied yield for the S&P 500 SPX, -2.98% of 1.65%. Paccar’s stock has slipped 1.3% year to date, while the S&P 500 has dropped 16.4%.