Aerospace and defense player Boeing Co. (BA) raised its quarterly dividend 50% from $0.485 to $0.73 and announced an additional $10 billion in share repurchases – the highest ever buyback announced by the company. The dividend payout comes to $2.92 on an annualized basis with a yield of 2.2%.
The $10 billion from the fresh authorization, along with the $800 million remaining from the 2007 authorization, will be used over the next two to three years at the management’s discretion. Boeing’s stock closed at $134.72 yesterday, with a jump after-hours to $137.28.
The announcement comes just days after the Chicago-based company’s negotiations with trade unions collapsed in Seattle. Boeing could not reach an agreement with the International Association of Machinists and Aerospace Workers, which refused to comment. The company remains in sound financial shape though, with strong and sustainable operational performance, along with increasing cash flows, according to CEO Jim McNerney.
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