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Boeing headquarters

Boeing Raises Dividend, Replaces Share Repurchase Plan

Dec. 16, 2014
With the latest dividend hike, Boeing's regular dividend has increased 88% over the past two years.

Aerospace giant Boeing (IW 500/13) on Monday announced a $12 billion share repurchase plan and a 25% hike in its quarterly dividend to investors.

The Boeing board decided to replace the 2013 buyback plan, of which about $4.8 billion remains, the company said in a statement.

For 2014, buyback activity is complete at $6 billion; repurchases were expected to resume in January.

The company's regular dividend was raised to 91 cents per share from 73 cents, marking an 88% increase over the past two years.

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

McNerney also highlighted "the solid growth outlook for commercial aviation."

In the year to date on Dec. 2, Boeing had 1,274 net orders for commercial aircraft and delivered 647.

It is well ahead of European rival Airbus, which had 1,031 net orders and 554 deliveries at the end of November.

Copyright Agence France-Presse, 2014

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