The Boeing Company (NYSE: BA) board approved a new repurchase plan for up to $7 billion of common stock.
Boeing has bought approximately $8 billion of its stock since resuming repurchases during 2004. This new plan follows the $3 billion buy back that the board approved in August 2006. The company is nearing completion of the repurchases authorized under that plan.
The company cited strong financial performance as the basis for both the repurchase and continued investment in growth and productivity.
PAYOUT YIELD ANALYSIS
The company did not provide specific details on the timing of the repurchase. Therefore, we estimate that the buyback pattern will continue at rate of approximately $2 billion per year. With 775 million shares outstanding, the repurchase promises to return $2.58 per share per year.
Combined with the annualized dividend of $1.40, the Total Payout is projected to be $3.98 per share over the next 4 quarters. At a share price of $98, the Total Payout Yield is projected to be 4.1%.
- Payout Yield Staff