NEW YORK - Aerospace giant Boeing (IW 500/14) brought some holiday cheer to investors Monday, announcing a $10 billion share buyback and a 50% dividend hike.
The company said its board of directors had approved the repurchase of an additional $10 billion in the company's stocks and a 50 percent increase in the quarterly dividend, to 73 cents.
"These actions reflect sustained, strong operational performance by our businesses, increasing cash flow, and our confidence in the future," Jim McNerney, Boeing chairman, president and chief executive, said in a statement after stock markets closed.
"Our team's relentless focus on business execution and competitiveness is providing the financial strength to continue investing in our core businesses while increasing our returns to shareholders."
The large share buyback will come in addition to the roughly $800 million remaining from a 2007 stock repurchase authorization.
Boeing said that it had completed stock repurchases for 2013. The Chicago-based company said it expected to resume them in January, with the program continuing over the next two to three years.
Copyright Agence France-Presse, 2013