Chicago-based aerospace giant Boeing gave investors and shareholders a reason to smile this holiday season by setting a $10 billion share buyback and 50 percent dividend boost. This is after the firm’s board of directors approved the increase in value per share from 48.5 to 73 cents which is to be paid in March.
Jim McNerney, Boeing chief executive stated that this token is a reflection of the firm’s optimistic stance. The move has enhanced the company’s cash flow while cementing its investors and shareholders’ trust. Potential investors are now lured to investing their fortune in the firm.
After this announcement, Boeing’s share value surged 1.5% to close the market at $134.7 in the New York Stock Exchange on Monday. The firm has also said that it has another $800 million repurchase authorization from 2007.
Boeing’s recent success in delivering Dreamliners accounts for a major source of earnings. The net profit from commercial aircraft arm as of September this year was $4.29 billion. This rise in commercial profits come as compensation for the dwindling earnings from other income sources including military airplane unit which stood at $2.24 billion, a decline of 1.6% as compared to the same period in the previous year.