PACCAR (PCAR) will hike its quarterly dividend by 6.3 percent to 34 cents per share. This is the first increase announced since 2019 by the truck maker. PACCAR did however pay a special cash dividend of $0.70 per share in 2020. This follows a special dividend of $2.30 per share in 2019. 

The next dividend is payable on June 2, 2021, to stockholders of record at the close of business on May 12, 2021. The annual dividend of PACCAR now will be $1.36 per share and yields 1.5% at a stock price of $90. The ex-dividend date for PCAR is May 11, 2021.

Mark Pigott, executive chairman, shared, “PACCAR has benefited from increased share in the North American and European truck markets, as well as steady growth in its aftermarket parts and finance segments. PACCAR has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years. Dividends are an important element of PACCAR’s shareholder returns, which have exceeded the S&P 500 index for the last 15 years.”

Preston Feight, chief executive officer, said, “PACCAR introduced the next generation Kenworth T680 and Peterbilt Model 579 trucks in the first quarter. The vehicles offer enhanced aerodynamics providing up to 7% increased fuel efficiency, Advanced Driver Assistance Systems and 15” configurable digital displays. Peterbilt and Kenworth also introduced new medium-duty trucks with an eight inch wider cab, easier entry and a premium interior. DAF has begun production of CF Electric trucks in the European market. Customer demand for PACCAR trucks, aftermarket parts and financial services is very strong.”

PACCAR pays an estimated $471 million in dividends annually, up from $443 million if this new hike is included.

PACCAR Inc (PACCAR) is a manufacturer of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. In North America, trucks are sold under the Kenworth and Peterbilt nameplates, in Europe, under the DAF nameplate and in Australia and South America, under the Kenworth and DAF nameplates. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The company’s Financial Services segment derives its earnings primarily from financing or leasing PACCAR products in North America, Europe and Australia. The company’s Other business includes the manufacturing and marketing of industrial winches.