PACCAR Incs Board of Directors today approved an increase of 14% in the regular quarterly cash dividend from twenty-eight cents ($.28) per share to thirty-two cents ($.32) per share. The dividend will be payable on March 5, 2019, to stockholders of record at the close of business on February 12, 2019. The Board of Directors also declared an extra cash dividend in the amount of two dollars ($2.00) per share, payable on January 4, 2019, to stockholders of record at the close of business on December 14, 2018.
PACCARs Board of Directors today approved the repurchase of $500 million of its outstanding common stock, effective upon completion of the current $300 million stock repurchase program. Stock repurchases of $124.8 million are remaining under the current $300 million stock repurchase program.
Mark Pigott, executive chairman, shared, PACCARs consistent growth in global vehicle market share over the last 20 years has generated increased profits in its aftermarket parts and finance segments. This profitable aftermarket business has become a larger portion of PACCARs overall earnings and contributes towards steady financial results. PACCAR has increased its regular quarterly dividend an average of 11% per year during the last 20 years. PACCAR has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years. PACCAR complements these cash dividends with stock repurchase programs. This consistent allocation of capital is an important part of PACCARs shareholder returns.
Ron Armstrong, chief executive officer, said, PACCAR Parts revenues have grown an annual average of 8% over the last 15 years, and grew 17% in the first nine months of 2018, compared to the same period last year. Customer demand for Kenworth, Peterbilt and DAF trucks is at record levels. Kenworth and Peterbilt truck backlogs are strong, with production scheduled well into 2019. DAF has achieved record European above 16-tonne market share of 16.6% year-to-date, compared to 15.1% in the same period last year. At the recent IAA truck show in Hannover, Germany, DAF highlighted its technology leadership by displaying its range of LF Electric, CF Electric and CF Hybrid trucks.
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced diesel engines, provides financial services and information technology, and distributes truck parts related to its principal business. PACCAR shares are listed on the NASDAQ Global Select Market, symbol PCAR. Its homepage is www.paccar.com.