("Freeport-McMoRan Plans $471M Special Dividend, 2-For-1 Stock
Split," published at 8:23 a.m. EST, misstated the size of the
annual-dividend increase. A corrected story follows.)
Freeport-McMoRan Copper & Gold Inc. (FCX) announced plans to
pay a $1-a-share special dividend and enact a 2-for-1 stock split
as shares have quintupled the past two years.
Shares recently rose 2.3% premarket to $111.10.
The special dividend, which will cost $471 million, comes as the
copper company in October boosted its annual payout 67%. Many
companies are returning cash to shareholders through increased
dividends as corporate cash piles are near record levels.
A number also have enacted one-time special dividends in recent
weeks as companies were rushing to return cash to shareholders
ahead of a possible Jan. 1 increase in dividend-tax rates at the
federal level. But a deal reached by President Barack Obama and
congressional Republicans earlier this week would forestall any
possible changes for two years.
Freeport has been benefiting of late from a sharp rebound in
copper prices. Its third-quarter profit rose 27%, beating analysts'
expectations, as revenue increased on higher prices.
The 2-for-1 stock split will become effective on Feb. 1 while
the special dividend will be paid Dec. 30.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com