Boeing [BA] yesterday said it is increasing its quarterly dividend by 10 percent and will resume its stock repurchase program given its strong cash flow and outlook.
The quarterly dividend is being increased to 48.5 cents per share payable in March 2013. The company has $3.6 billion remaining in its current stock repurchase authorization and plans to buy back between $1.5 billion and $2 billion worth of its shares in 2013. The repurchase program was authorized in 2007.
Boeing said that it will begin repurchasing shares after its fourth quarter financial results are announced in January 2013.
“Strong cash generation, consistently solid core operating performance and a positive growth outlook enable us to take these steps to deliver value for our shareholders,” Jim McNerney, Boeing’s chairman, president and CEO, said in a statement. “As returns accelerate on the investments we made in innovative new products, we plan to continue our balance cash deployment strategy, increasing returns to shareholders, investing in our core businesses and our workforce, and maintaining a strong balance sheet with healthy credit ratings.”