Investing.com -- Shares in Boeing Company (N:BA) ticked up in after-hours trading after one of the world's largest airplane manufacturers raised its quarterly dividend by 20% on Monday afternoon.
On Monday, Boeing announced that its Board of Director authorized a $14 billion share repurchase program, along with plans to increase its quarterly dividend to $1.09 per share. The company's repurchase plan replaces the $12 billion authorization approved last December, of which $5.25 billion remained. As the company approaches the end of the year, it said Monday that share repurchases have been completed in 2015 for a year-end total of $6.75 billion.
"Once again, we are demonstrating our commitment to a balanced cash deployment strategy that fuels investments in our people, innovation and growth, and returns significant value to our shareholders," said Boeing President and Chief Executive Officer Dennis Muilenburg. "Our strategy is rooted in a foundation of strong operating performance across our business, confidence in our team and long-term market outlook and an unmatched portfolio of products and services."
The dividend will be paid on March 4 to shareholders of record as of Feb. 12. Boeing has increased its quarterly dividend exponentially in each of the last five years.
"We continue to take a disciplined approach to managing our financial strength, channeling our strong cash flow generation toward continued investments in the business and consistent returns for our shareholders," said Greg Smith, Boeing executive vice president of Business Development and Strategy and chief financial officer.
In October, Boeing increased its full-year revenue, cash flow and earnings per share guidance after posting strong results during the third quarter. Weeks earlier, Boeing hosted China premier Xi Jinping in a tour of the company's Paine Field assembly plant outside Seattle. The visit resulted in a $38 billion deal with China, in which a host of Chinese companies agreed to buy 300 Boeing jets and build an assembly plant in Asia.
Elsewhere, the company said a small fire on Saturday night at one of its wing factories in Everett, Washington, had no impact on its production.
Shares in Boeing gained 1.35 or 0.94% to 144.40 in after-hours.