PHH raises dividend, plans 2-1 stock splitPHH Corp. said...

Maryland Watch

June 25, 1996

PHH raises dividend, plans 2-1 stock split

PHH Corp. said yesterday that it raised its quarterly dividend 12 percent and plans to split its stock.

The 2-for-1 stock split would give shareholders an additional share of PHH for each share they own. The new shares will be issued July 31 to shareholders of record July 5.

"For the past 18 quarters, PHH has produced significant earnings growth, and the stock market has begun to recognize PHH as a company with strong earnings potential," PHH Chief Executive Robert Kunisch said in a statement. "The stock split will help us reach a broader base of shareholders by making it easier for individuals to invest in PHH."

Companies often like stock splits because they cut the price of each share in half, making it easier for a very small investor to buy a handful of shares. PHH closed yesterday at $55.25, up 62.5 cents.

The dividend increase boosts PHH's payout to 38 cents a share quarterly, or $1.52 a year. The cash dividend also is payable July 31 to holders as of July 5.

PHH said yesterday's announcement marked the Hunt Valley company's 35th dividend increase in 38 years as a public company.

Pub Date: 6/25/96

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