Boeing Surges On Share Buyback, Dividend Increase

Boeing Co (NYSE: BA) announced Tuesday an increased share repurchase plan of $12 billion and its Board declared that the company's regular quarterly dividend will increase by 25 percent to $0.91 per share.

According to the company, the $12 billion repurchase authorization replaces the authorization approved in 2013 of which approximately $4.8 billion was remaining. Repurchase activity for 2014 is now complete at $6 billion and is expected to resume in January 2015.

"Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing," said Chairman and Chief Executive Jim McNerney. "That strength, coupled with the solid growth outlook for commercial aviation and Boeing's unmatched product and services portfolio, provides us with the foundation to continue our balanced cash deployment strategy, investing in our core programs while increasing shareholder value."

Boeing traded at $124.55 in the premarket, up 2 percent.