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BELLEVUE, Wash. (AP) — Paccar Inc. has declared an extra dividend of 80 cents per share, the truck maker said Tuesday.
The company said the dividend is payable on Dec. 28 to shareholders of record as of Dec. 14. It also declared a regular quarterly dividend of 20 cents per share payable on March 5 to shareholders of record Feb. 15.
Paccar is one of many companies to move up its quarterly payout or issue a special end-of-year payment to protect investors from potentially having to pay higher taxes on dividend income starting in January.
Since 2003 investors have paid a maximum 15 percent on dividend income. But that historically low rate will expire in January unless Congress and President Barack Obama reach a compromise on taxes and government spending. As it stands, dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate would jump to 43.4 percent.
Paccar, based in Bellevue, Wash., makes light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates.
Shares of the company fell 2 cents to $43.46 in afternoon trading. Its shares have traded between $35.21 and $48.22 in the past 52 weeks.