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Boeing ups stock buyback to $12 bln from $10 bln, boosts dividend by 25%

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Boeing, (NYSE:BA) climbed today after the world’s largest plane maker raised its share buyback authorization to $12 billion from $10 billion and said it would boost its quarterly dividend by 25 percent, a sign of confidence in its cash outlook for the year.

Shares gained 2.4 percent to $124.99 at 3:21 p.m. in New York, paring this year’s loss to 8.5 percent.

The new stock repurchase plan replaces a previous authorization approved in 2013, which had about $4.8 billion remaining.

The Chicago, Illinois-based company said in a statement late yesterday that it completed its stock buybacks for 2014—a total of $6 billion—and plans to resume share repurchases in January.

Boeing raised the dividend to $0.91 per share from $0.73. The dividend increase results in a yield of roughly 3 percent. The dividend is payable to stockholders of record as of Feb. 13.

"Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing," chief executive officer Jim McNerney said in the statement.

In October, Boeing reported an 18 percent rise in third-quarter profit, but its cash generation lagged below expectations, putting a question mark over its ability to meet its forecast for the year.

Boeing had promised that cash flow would be "very strong" in the fourth quarter, and Monday's move signalled it was confident of hitting its targets.

 

 

 

 

Quick facts: Boeing

Price: 362.5 USD

NYSE:BA
Market: NYSE
Market Cap: $204.01 billion
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