Boeing's Big Dividend Increase Delights Investors

Boeing's Big Dividend Increase Delights Investors

U.S. aerospace giant Boeing (NYSE: BA) has been a big winner for investors over the past five years. In addition to delivering massive capital appreciation -- the stock price has nearly quadrupled since late 2012 -- Boeing has also increased its dividend at an astounding rate.

On Monday evening, Boeing unveiled its annual capital return program update. As expected, shareholders will get another big dividend increase in 2018, while Boeing will also continue to buy back stock at a steady pace.

Boeing nearly tripled its quarterly dividend from $0.485/share to $1.42/share between 2013 and 2017, including a 30% increase last year. Given this track record of strong dividend growth and Boeing's remarkable cash flow growth -- the company expects to produce about $10.5 billion of free cash flow this year, up from $7.9 billion in 2016 -- the company was well-positioned to implement another big dividend increase for 2018.

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Source: Fool.com