Eaton Raises Dividend By 16%
- July 21, 2010
- Dividend News, Dividend Stocks
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Eaton Corporation (ETN: 51.80 +0.29%) announced today that the company is increasing their quarterly dividend by 16% to $.58 per share.
Following the $.08 per share dividend increase, Eaton shares will offer a 3.4% dividend yield based on yesterday’s closing price.
The dividend increase comes as ETN delivered second quarter earnings results that were $.19 above Wall Street’s consensus estimates. The company raised their guidance for the remainder of 2010 and their dividend.
The company reported $405 million in free cash flow in the second quarter. Given the strong results in the first half of 2010, Eaton believes that free cash flow will be $50 million higher in the second half of the year.
Alexander M. Cutler, Eaton chairman and chief executive officer, said, “In light of our strong second quarter results and our improved outlook for the balance of the year, we are increasing our quarterly dividend by 16 percent, from $0.50 per share to $0.58 per share.”
Eaton shares have risen nearly 9% since the beginning of the year and shares were up significantly in early morning trading following the strong earnings results and dividend increase.
The dividend will be payable on August 27, 2010 to shareholders of record as of August 9, 2010.
