Paccar Cuts Dividend to 9 Cents From 18 Cents

Paccar Inc. said Tuesday that its board has halved the commercial truck maker's quarterly dividend to 9 cents per share, from 18 cents.

The reduced dividend will be paid Sept. 8 to stockholders of record on Aug. 18.

In a statement, Paccar Chairman and CEO Mark Pigott said the company plans to increase the dividend once business markets improve.

"Today's proactive decision will enhance Paccar's strong balance sheet and liquidity and enable the company to further invest in important projects such as new truck models — including diesel-electric hybrid vehicles, industry-leading factory productivity and customer-focused aftermarket distribution centers," Pigott said.

Paccar shares lost $1.11, or 3.6 percent, to $29.70 on Tuesday.

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