The board of directors of PHH Corp. voted yesterday to raise the company's quarterly dividend on its common stock by 2 cents, to 34 cents per share.
The Hunt Valley-based corporate services company wanted to raise the payout by 6 percent because it aims to pay out 30 percent to 35 percent of its earnings in dividends, and its earnings have been rising in the past several years, said Chief Financial Officer Roy Meierhenry.
Also contributing to the upward pressure on the dividend: an $8 rise in PHH's stock price over the past three months. PHH's stock closed up 12.5 cents in New York Stock Exchange trading after the announcement yesterday, to finish at $43.125.
It was PHH's second recent dividend increase. Last year, the company also raised its quarterly dividend 2 cents.
The dividend is payable on July 31, 1995, to shareholders of record July 7, 1995.