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Dell Announces First Quarterly Dividend, Shares Rise

The company will start paying dividends in the third quarter


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.

Stay on Hold With Dell For the Long Term
Stay on Hold With Dell For the Long Term

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.”

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