In a turnabout, Dell Computer (NASDAQ:DELL) has announced that it will pay shareholders a dividend. That will be the first dividend the company has ever paid, the Associated Press noted.
Investors liked the news, sending Dell shares up more than 4% in Wednesday morning trading.
The new dividend will be 8 cents a share, paid quarterly, starting in the third fiscal quarter, the company said. At that level, the payout will represent about 2.7% of the company’s current share price.
Dell officials said the dividend resulted from stronger cash flow due to the reshaping of its product and business mix over the past several years and would bolster its “disciplined capital allocation strategy.”