Shares of AGCO Corp. rose 0.3% in midday trading Thursday, after the the maker of agricultural machinery declared a “variable” special dividend of $4.50 a share, and boosted its regular quarterly dividend by 20%. The special dividend will be payable June 21 to shareholders of record on May 20, while the new regular dividend of 24 cents a share, up from 20 cents a share, will be payable June 15 to shareholders of record on May 16. Based on current stock prices, the special dividend and the new annual dividend rate implies a dividend yield of 4.30%, which compares with the implied yield for the S&P 500 of 1.49%. AGCO’s stock has rallied 9.5% year to date, while the S&P 500 has lost 10.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
