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Goodyear reinstating dividend, starting buyback

NEW YORK (AP) -- Goodyear Tire & Rubber Co. is reinstating its quarterly dividend after more than a decade. It is also starting a buyback of up to $100 million.

The tire company last paid a dividend on its common stock in December 2002.

Shares climbed in premarket trading on Friday.

Goodyear is declaring a dividend of 5 cents per share. The dividend will be paid on Dec. 1 to shareholders of record on Nov. 1. Future dividends will be subject to board approval.

The company also said that it anticipates positive cash flow through 2016, excluding prefunding its pension.

Goodyear, based in Akron, Ohio, has 52 facilities in 22 countries. Its shares gained $1.09, or 4.9 percent, to $23.32 before the market open.