Buoyed by stronger revenues and sharp cost cutting, CSX Corp. yesterday approved an 18 percent quarterly dividend increase and said it would split its common stock 2 for 1.
The quarterly dividend on the company's common stock will be increased from 44 cents per share to 52 cents per share prior to the split. The dividend is payable Dec. 15 to stockholders of record on Nov. 24.
The record date for the stock split is Dec. 4. On Dec. 21, shareholders will receive one new share of common stock for every one they own. By lowering the price of a common share, the stock split is designed to stimulate more investment in the Richmond, Va.-based transportation giant.
CSX shares rose $3.125 yesterday, to $81.75, on trading of 304,400 shares, compared with its three-month daily average of 188,100 shares.
Last month, Mr. Snow said that CSX's third-quarter profits would exceed the $1.68 earned last year.