Boeing Boosts Dividend 51% on $10 Billion Stock Buyback
Boeing Co. (HON) boosted its quarterly dividend by 51 percent and authorized a $10 billion share-repurchase plan, the largest in its history.
The quarterly dividend will rise to 73 cents a share from 48.5 cents and will be payable March 7 to shareholders of record as of Feb. 14, Chicago-based Boeing said today in a statement. Boeing said its new buyback is in addition to the approximately $800 million remaining from a 2007 repurchase authorization.
“These actions reflect sustained, strong operational performance by our businesses, increasing cash flow and our confidence in the future,” Chief Executive Officer Jim McNerney said in the statement.
Boeing has been reaping more cash as it accelerates production of some of its top-selling jetliners, including the single-aisle 737 and the wide-body 777 and 787 Dreamliner. The shares have surged 79 percent this year, the most among the 30 stocks in the Dow Jones Industrial Average. The Standard & Poor’s 500 Index is up 25 percent.
Boeing shares rose 0.7 percent to $134.72 at the close in New York. Its share repurchase was announced after the trading session.
The buyback tops the company’s previous record of $7 billion in 2007, Chaz Bickers, a Boeing spokesman, said.
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