Chrysler Raises Dividend, Says Buyback Over

Chrysler Corp. declared a 20% increase in the company’s stock dividend Thursday and said it has finished a $1-billion stock repurchase program announced a year ago.

Dissident shareholder Kirk Kerkorian, who tried to take over the auto maker in April and has been pressing it to share more wealth with stockholders, issued a statement calling the action “another small step in the right direction.”

The move had little effect on Wall Street. After rising slightly on the news, Chrysler shares retreated and closed at $51.75, down 62.5 cents, on the New York Stock Exchange.

Chrysler’s quarterly dividend rises 10 cents a share, to 60 cents, payable Jan. 12 to shareholders of record Dec. 15. The increase is the fifth in the past two years; the dividend was at 15 cents a share on Dec. 1, 1993.

“While many have been lamenting the drop-off in auto sales during 1995, only a handful of years in U.S. auto history have been better, and 1996 is looking like it will be at least as good and maybe even a little bit stronger,” Chairman Robert J. Eaton said as part of Thursday’s announcement.

Eaton said company directors approved the increase with the expectation that Chrysler will be able to maintain that payout level through the next downturn in the industry.

He said the company has finished the $1-billion stock buyback announced last December after Kerkorian demanded steps to increase Chrysler’s share value. Eaton said a second $1-billion repurchase program announced earlier this year has begun.