Ahead of the Bell: Boeing
Boeing shares get a lift in premarket from stock buyback, increased quarterly cash dividend
NEW YORK (AP) -- Boeing Co. shares rose before Tuesday's opening bell on news of increases in the aerospace company's stock buyback program and quarterly dividend.
The Chicago-based company's board late Monday approved a $10 billion increase to the stock buyback program. The amount is in addition to the $800 million remaining under Boeing's current stock repurchase program.
At the same time, Boeing declared a quarterly cash dividend of 73 cents, representing an increase of about 50 percent.
Citi analyst Jason Gursky, who backed his "Buy" rating for Boeing stock, said the dividend boost was larger than he expected, while the stock buyback was roughly in line with his predictions. He said he expects Boeing to buy back the stock over about two years.
In premarket trading, Boeing shares rose $3.03, or 2.3 percent, to $137.75 about 90 minutes ahead of the market opening.
