Boeing [BA] on Monday said its board has approved an increase in the company’s quarterly dividend payment and an expansion of its share repurchase program on the basis of continued financial strength.
The quarterly dividend will increase 25 percent to 91 cents per share payable next March. The new share repurchase program is $12 billion and replaces a program approved in 2013 that had $4.8 billion remaining.
The company said repurchase activity for 2014 is complete and will likely resume in January 2015. The repurchase activity under the new program is expected to occur over the next two to three years.
“Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing,” Jim McNerney, the company’s chairman and CEO, said in a statement. “That strength, coupled with solid growth and outlook for commercial aviation and Boeing’s unmatched product and services portfolio, provides us with the foundation to continue our balanced cash deployment strategy, investing in our programs while increasing shareholder value.”