The new rewards follow Boeing’s 82 percent stock-price gain this year.
Boeing is handing out more goodies to investors already flush from the company’s leap this year to the top of the Dow Jones industrial average.
The quarterly dividend will rise 20 percent to $1.71 a share, Boeing said in a statement Monday, almost doubling analyst expectations.
Directors also authorized $18 billion in share buybacks, up from a $14 billion program they put in place a year ago.
The richer rewards bolster the planemaker’s efforts to win over investors with its pledge to return cash gains to shareholders. The company’s factories are also operating in higher gear as it tries to profit from a record order backlog, which provides a cushion from the cyclical market swings that have hurt other industrial giants such as General Electric.
The news pushed Boeing shares up 1.3 percent to $286.95 in after-hours trading Monday. Boeing’s stock has outpaced Apple and Caterpillar with an 82 percent gain this year, the largest rise on the 30-member Dow.
Boeing expects to generate $12.5 billion in cash as it speeds output of the single-aisle 737, its largest source of profit, and reaps gains from the 787 Dreamliner, which was formerly a cash drain. Those results should also get a boost from lower-than-expected research and development spending, and a one-time $700 million tax benefit after Boeing spent $3.5 billion in treasury shares during the third-quarter to shore up its pension.
Boeing has raised its quarterly dividend more than 250 percent over the past five years, if the announcement is included in the tally. The new dividend will be payable March 2 to shareholders of record as of Feb. 9.
The Chicago-based company said it has repurchased $9.2 billion worth of its shares this year from the $14 billion authorization approved in December 2016. The new $18 billion repurchase program is the largest in company history.
Since it embarked on the buyback spree in 2013, Boeing has spent more than $30 billion on its stock while the count of basic shares outstanding has shrunk 20 percent, according to data compiled by Bloomberg.