Electronic instrument manufacturer Ametek (NYSE: AME) has declared on Wednesday a three-for-two stock split and a 50% increase of its quarterly cash dividend.
The three-for-two split of its common stock will result in the issuance of one additional common share for every two shares owned as of the record date.
The move is expected to broaden the stock's marketability and improve its trading liquidity.
The company said the new shares will be paid near the end of December to shareholders of record on December 10 this year.
Separately, the company decided, after revewing its financial position, to increase the quarterly common stock dividend by 50%, to an annual rate of $0.36 per share, or $0.24 on a post-split basis. The fourth quarter dividend of $0.09 per share, or $0.06 after the split, will be paid on the same date as the additional shares.
"Our four growth strategies have resulted in significant increases in sales, profitability and cash flow. We remain firmly committed to these strategies, in particular our disciplined acquisition strategy, and believe they will continue to drive shareholder value in the future," said Amtek chairman and CEO Frank S. Hermance.
Ametek is manufactures electronic instruments and electro-mechanical devices, and has annualized sales of $2.5 billion.