The world's largest manufacturer of storage computers, EMC Corp has expanded the budget for its share buyback plan by another US$5 billion. It also commenced the disbursement of a quarterly dividend to return cash to its investors even when there has been a decline in customer spending.
The total budget for the stock repurchase program was boosted to US$6 billion for the next three years until 2015. This was announced by the company based out of Hopkinton, MA today together with another announcement of a dividend of US$0.10 per share with an indicated yield volume of 1.6% according to Bloomberg compiled data.
The share values of EMC has declined by more than 75% from its peak back in 2000. CEO Joseph Tucci is hardpressed to revitalize the company's growth at the time when corporations and governments have cut down on its storage computer purchases. This is compounded by a bleak economic outlook,
After the announcement, share values jumped by 6.5% to US$25.20 per share in early morning trading at the NYSE. Overall though, the stock fell 6.5% in the NYSE for this year until yesterday. Comparatively, the stock gained 16% from the Standard and Poor's 500 index.
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