Intel to buy back extra US$10bn worth of stock
Chip giant Intelís board of directors have authorised a massive US$10bn increase in stock repurchasing, expanding it to US$14.2bn. The company has also declared a US$18.12 dividend for shareholders.
“In 2010, Intel achieved its best and most profitable year ever,” said Paul Otellini, Intel president and CEO.
“Today’s announcement signals confidence in our fundamental business strategies both today and looking forward, allowing us to return more cash to shareholders.”
For the fourth quarter, Intel posted revenue of US$11.5bn. The company reported fourth-quarter operating income of US$4.3bn, net income of US$3.4bn, and earnings per share of 59 cents. Fourth-quarter revenue, operating income, net income, and EPS were also all records in the company’s history.
The company last week announced plans to create 1,000 jobs as part of a US$500m upgrade to its manufacturing plant in Leixlip, where it already employs around 4,000 people.
Intel began paying a cash dividend in 1992 and has paid out about US$21bn to its shareholders in dividends. Intel cash dividends paid during 2010 totalled about US$3.5bn.
Since the company’s stock buyback programme began in 1990, Intel has repurchased some 3.4bn shares at a cost of about US$70bn.
Taken together since their inception, Intel’s dividends and stock buyback program have returned some US$91bn to shareholders, the company said.