Buyback & Dividend Increase in the Cards for Boeing!
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.
Amidst the concerns of the global economy slowing, Boeing’s board has voted to raise its quarterly dividend 20 percent, putting each dividend per share at $2.05 in 2019. Along with increasing its quarterly dividend, the company’s board also approved a $20 billion stock buyback plan which replaces the prior authorization.
Boeing’s $179.5 billion market capitalization rose over 1 percent after the news was announced. The company’s shares have gained 7 percent since the beginning of the year.
The increase comes as Boeing increases the production of its most popular model, the 737 from 47 planes last year to the expected amount of 57 by the end of next year.
“Boeing’s strong operational performance, financial health and positive future outlook underpin our continued investments in our people and our workplace, in innovative products and services, and in select strategic acquisitions and partnerships that accelerate our growth strategy.” -Boeing Chairman and CEO Dennis Muilenburg
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