Boeing increases share buyback, raises dividend 20%
NEW YORK: Boeing unveiled a $14 billion share buyback program and boosted its quarterly dividend as the US aerospace giant shared its bounty with investors from strong demand for its jetliners on Monday.
The Chicago-based company said it would pay investors a $1.09 dividend for the quarter under way, a 20 percent increase from a year ago. It noted that it had raised the dividend for five straight years.
In addition, Boeing will embark on a new $14 billion share repurchase program that replaces the $12 billion buyback approved last December, of which $5.25 billion remained.
The company said repurchasing was expected to resume in January and likely would be made over the next two to three years.
Boeing President and Chief Dennis Muilenburg said in a statement, “Once again, we are demonstrating our commitment to a balanced cash deployment strategy that fuels investments in our people, innovation and growth, and returns significant value to our shareholders.”
Investors welcomed the bonanza, pushing shares in the Dow member up 1.2 percent to $144.75 in after-hours trade. Boeing has benefited from a strong civil aviation market as airlines, reaping cost savings from lower fuel prices, update and expand their fleets.
Boeing reported a $485 billion backlog of nearly 5,700 commercial airplane orders at the end of the third quarter and said it had delivered 580 planes in the year to September.