Boeing Boosts Dividend 10%, Resumes Stock Buyback

Monday, 17 Dec 2012 05:02 PM

 

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Boeing Co. increased its dividend by 10 percent and resumed a $3.6 billion share buyback as revenue is bolstered by higher orders and deliveries even while the shares lag.

The quarterly dividend will climb to 48.5 cents a share from 44 cents and the company plans to buy back as much as $2 billion of shares in 2013, Chicago-based Boeing said in a statement Monday.

Data compiled by Bloomberg showed the quarterly payout was predicted to rise 9.1 percent to 48 cents a share in the biggest jump in five years. Boeing had $11 billion in cash as of Sept. 30, a figure that could swell as the company completes a planned 60 percent production increase in the four years ending in 2014 to work its way through a $307 billion order backlog.

The cash deployment comes as Boeing stock has suffered from delays to the new 787 Dreamliner model that hurt the company’s credibility. The shares are down about 26 percent since the first delay was revealed in October 2007.

Boeing shares rose 0.9 percent to $74.65 at the close in New York. The stock has gained 1.8 percent this year, lagging gains of 21 percent for Airbus SAS parent European Aeronautic, Defence & Space Co. and 14 percent for the Standard & Poor’s 500 Index.

© Copyright 2014 Bloomberg News. All rights reserved.

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