(CHICAGO) — Boeing said Monday it plans to increase its quarterly dividend by 10 percent to 48.5 cents per share and that it will also resume its $7 billion share buyback program.
Boeing Chairman, President and CEO Jim McNerney said in a statement Monday that the company’s recent positive performance permits the Chicago-based company to redeploy cash back to its shareholders.
“Strong cash generation, consistently solid core operating performance and a positive growth outlook enable us to take these steps to deliver value for our shareholders,” McNerney said. “As returns accelerate on the investments we made in innovative new products, we plan to continue our balanced cash deployment strategy, increasing returns to shareholders, investing in our core businesses and our workforce, and maintaining a strong balance sheet with healthy credit ratings.”
The company’s board of directors initially authorized the repurchase program in October 2007. Now, Boeing says that after its fourth quarter earnings announcement in January 2013, shares can be repurchased. The buyback program is expected to use the remaining $3.6 billion left from its original authorization.
Boeing says the dividend is payable March 8, 2013 to shareholders of record as of Feb. 15, 2013.
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Parija Kavilanz, CNN
Paul R. La Monica, CNN