Dell Inc., the world's third-largest maker of personalcomputers, initiated a quarterly dividend of 8 cents a share. Thestock rose in extended trading.
|The dividend will begin in the third quarter of the currentfiscal year, the Round Rock, Texas-based company said today in astatement. The dividend yield would be 2.7 percent, based onyesterday's closing price, Dell said.
|Chief Executive Officer Michael Dell has been acquiring makersof data storage, networking gear and business software to diversifybeyond PCs as tablets and smartphones siphon sales. The company isexpanding in enterprise solutions to offer corporations a broaderlineup of products and services to run technology operations.
|“With the cash flows we've been generating, up 5 percent lastyear, we're very happy to initiate this dividend and return morecapital to shareholders,” Dell said in an interview on CNBC.
|Dell climbed as much as 6.6 percent in extended trading afterclosing at $11.97 in New York. The stock has dropped 18 percentthis year.
|Through the dividend and share repurchases, Dell said it plansto return 20 percent to 35 percent of free cash flow to investors,up from a prior projection of 10 percent to 30 percent. Over thepast four quarters, Dell has generated $4.9 billion in cash flowfrom operations.
|Dividend Yields
|The company lost share in the global PC market in the firstthree months of the year and trails Hewlett-Packard Co. and LenovoGroup Ltd., according to market researcher Gartner Inc.
|Hewlett-Packard's dividend yield is 2.5 percent, while Lenovo'sis 2 percent, according to data compiled by Bloomberg.
|In February, Dell projected fiscal 2013 earnings excluding someitems of at least $2.13 a share. CEO Dell and Chief FinancialOfficer Brian Gladden will update analysts on the company's outlooka meeting tomorrow in Austin, Texas.
|Dell in May said revenue for the quarter ending in July would be$14.7 billion to $15 billion.
|Bloomberg News
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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