Boeing Increases Share Buyback To $12 Bln; Boosts Dividend 25%

(RTTNews) - The board of aerospace and defense company Boeing Co (BA) on Monday increased the authorization for its share buyback plan to $12 billion and lifted the quarterly dividend by 25 percent to 91 cents a share.

"Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing," said Jim McNerney, the company's chief executive officer.

"That strength, coupled with the solid growth 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 core programs while increasing shareholder value."

The $12 billion repurchase authorization replaces the authorization approved in 2013 of which about $4.8 billion was remaining. Boeing said repurchase activity for 2014 is complete at $6 billion and is expected to resume in January 2015.

Meanwhile, commenting on the dividend increase, Boeing Chief Financial Officer Greg Smith said, "This increase affirms our commitment to a balanced cash deployment strategy that delivers consistent returns to our shareholders."

The dividend declared today is payable March 6, 2015, to shareholders of record as of February 13, 2015.

BA closed Monday at $122.08, up $1.31 or 1.08%, on a volume of 6 million shares on the NYSE. In after hours, the stock gained $3.12 or 2.56% at $125.20.