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Boeing increases share buyback, raises dividend 20%

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Boeing unveiled on Monday a US$14 billion share buyback programme and boosted its quarterly dividend as the US aerospace giant shared its bounty with investors from strong demand for its jetliners.

[NEW YORK] Boeing unveiled on Monday a US$14 billion share buyback programme and boosted its quarterly dividend as the US aerospace giant shared its bounty with investors from strong demand for its jetliners.

The Chicago-based company said it would pay investors a US$1.09 dividend for the quarter under way, a 20 per cent increase from a year ago. It noted that it had raised the dividend for five straight years.

In addition, Boeing will embark on a new US$14 billion share repurchase program that replaces the US$12 billion buyback approved last December, of which US$5.25 billion remained.

The company said repurchasing was expected to resume in January and likely would be made over the next two to three years.

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"Once again, we are demonstrating our commitment to a balanced cash deployment strategy that fuels investments in our people, innovation and growth, and returns significant value to our shareholders," said Dennis Muilenburg, Boeing president and chief executive, in a statement.

Investors welcomed the bonanza, pushing shares in the Dow member up 1.2 per cent to US$144.75 in after-hours trade.

Boeing has benefited from a strong civil aviation market as airlines, reaping cost savings from lower fuel prices, update and expand their fleets.

Boeing reported a US$485 billion backlog of nearly 5,700 commercial airplane orders at the end of the third quarter and said it had delivered 580 planes in the year to September.

AFP

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