Boeing Rises After $14 Billion Buyback Plan, 20% Dividend Boostby
Boeing Co. rose in late trading after boosting its dividend 20 percent and expanding a stock-repurchase plan to $14 billion to let investors share in the benefits of soaring airliner deliveries.
The quarterly payout will rise to $1.09 a share and will be payable March 4 to stockholders of record as of Feb. 12, Chicago-based Boeing said in a statement Monday. The increase exceeded the $1.02 projection based on data compiled by Bloomberg.
Boeing’s new buyback authority replaces a $12 billion program approved last year, of which $5.25 billion remained, according to the company. The shares gained 1.21 percent to $144.51 at 4:53 p.m. after the close of trading Monday. Boeing stock has advanced 10 percent this year.
The twin moves reward shareholders who are sticking with Boeing in the face of concern that the bull market for aircraft sales may be waning after a run of almost a decade. Sales in 2015 are poised to fall short of factory output, with 575 orders through Dec. 8 compared with projected deliveries of 755 to 760 commercial jets.