Boeing Hikes Dividend, Renews Buybacks
Boeing Co. (NYSE: BA), increasingly unloved by Wall St. because of problems with its 787 that might make the plane dangerous to fly, has decided to entice holders to keep their shares, or new investors to join the company's list of owners. The aerospace firm will increase its dividend by 10% from 48.5 cents and will renew its $3.6 billion share buyback initiative that was initially approved in 2007.
What Boeing will not do, but investors would have liked, is move the dividend into 2012 to help owners avoid increases in the taxes on dividends, which might change if Congress and the White House set new rates.
Chairman, President and Chief Executive Officer Jim McNerney said:
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. As returns accelerate on the investments we made in innovative new products, we plan to continue our balanced 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.
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, Aerospace, Dividends & Buybacks Tagged: BA