Boeing Raises Dividend By 25%; To Buyback $12 Bln. Shares - Update

(RTTNews) - The board of aerospace and defense contractor Boeing Co (BA), Monday boosted its quarterly dividend by 25 percent to 91 cents a share and raised the share buyback authorization to $12 billion as part of efforts to return funds to shareholders amid a buoyant growth phase marked by demand for its commercial aircraft.

"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."

Boeing shares gained more than 2 percent in after-hours trade on the New York Stock Exchange, following the announcement.

The company said today's buyback program replaces the authorization approved in 2013 of which about $4.8 billion remained. The repurchase activity for 2014 is complete at $6 billion and is expected to resume in January 2015, Boeing added.

As of September 30, Boeing had cash and cash equivalent of about $6.6 billion.

Boeing, based in Chicago, Illinois, has been benefiting from robust demand for commercial aircraft. As of December 9, Boeing reported net orders of 1,274 aircraft, including 982 737s.

In October, Boeing reported an 18 percent increase in profit for the third quarter, driven by higher revenues, and lifted its earnings outlook for 2014.

BA closed Monday at $122.08, up $1.31 or 1.08%, on a volume of 6.2 million shares on the NYSE. In after hours, the stock gained $2.73 or 2.24% at $124.81.