Goodyear Tire reallocating $1.1B of its 2014-2016 cash flow The updated capital allocation plan, which aims to increase shareholder value by providing approximately $650M in returns to investors includes: Allocating an additional $300M to growth capital expenditures to enable the company to build a new plant to serve its North American and Latin American consumer tire businesses and capitalize on the anticipated growth in high-value-added tire markets in the two regions. It also includes increasing the quarterly cash dividend on Goodyear's common stock by 20% to 6c per share from 5c per share beginning in September. The payout represents an annual rate of 22c per share for 2014 and 24c per share for 2015. The company plans to increase the share repurchase program by $350M to allow Goodyear to acquire up to $450M of its stock through 2016. Based on company performance, the shareholder return program can be increased up to an additional $250M, to a total of $900M. Goodyear Tire also plans on allocating an additional $400M towards debt reduction.
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