Boeing board increases share repurchase authorization to $12 billion, raises dividend 25%

Dino D'Amore
By Dino D'Amore December 16, 2014 21:56

Boeing board increases share repurchase authorization to $12 billion, raises dividend 25%

Boeing Chairman and Chief Executive Jim McNerney announced that the Boeing board of directors increased the company’s authorization for its share repurchase plan to $12 billion and declared that the company’s regular quarterly dividend will increase by 25 percent to 91 cents per share.

“Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing,” said McNerney. “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 approved today replaces the authorization approved in 2013 of which approximately $4.8B was remaining. Repurchase activity for 2014 is now complete at $6B and is expected to resume in January 2015.

The timing and volume of repurchases are at the discretion of Boeing management, however it is currently expected that the share repurchases will be made over the next two to three years. Repurchases may be made on the open market or in privately negotiated transactions.

Boeing’s new dividend represents an 88 percent increase over the past two years.

“This increase affirms our commitment to a balanced cash deployment strategy that delivers consistent returns to our shareholders,” said Boeing Executive Vice President and Chief Financial Officer Greg Smith. “This disciplined approach allows us to continue to invest in productivity and innovation and provides us with a strong foundation for growth,” Smith said.

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

Dino D'Amore
By Dino D'Amore December 16, 2014 21:56