Posted: Tuesday, May 6th 2014 at 10:34am
Delta approves $2 billion buyback; raises dividend
By The Associated Press
ATLANTA (AP) -- Delta Air Lines Inc.'s board of directors approved a plan to buy back more of its own stock and boost its quarterly dividend by 50 percent.
The Atlanta airline says it will buy $2 billion of its shares by the end of 2016. It will raise its quarterly dividend to 9 cents per share from 6 cents per share starting in September. Delta says the plans will boost shareholder value.
Buying back stock can help boost the company's share price and earnings per share.
Its shares are up 70 cents, or 1.9 percent, to $38.25 in premarket trading shortly before the market opened Tuesday. If those gains hold when trading starts, it will be the stock's highest point since it emerged from bankruptcy in 2007.
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