Dell to pay first ever dividend to bolster stock
Struggling computer maker Dell has announced its first quarterly dividend, following through on a pledge to use up some of its cash stockpile to boost shareholder value.
Dell on Thursday said it would pay a cash dividend of 8 US cents per share on October 22.
"This is the first cash dividend paid to shareholders in the company's history," the company said in a statement.
"The payment of a quarterly cash dividend is intended to help contribute to long-term shareholder value," Brian Gladden, Dell chief financial officer, said.
Founded in 1984, Dell Computer Corporation went public in 1988.
Michael Dell, the firm's founder, chairman and chief executive, announced in June that in view of the PC maker's cash position and a shift to a more diversified business model, "we feel confident this is a great time to return this capital to shareholders now in perpetuity".
The company will pay out 32 US cents per share annually, an annual expense of $US560 million ($A551.48 million), from a cash stockpile of $US17.2 billion ($A16.94 billion).
Dell shares closed flat at $US10.52 on Thursday and were up 1.4 per cent in after-hours Nasdaq trading in New York.
Once the biggest maker of PCs, the Texas-based company has fallen to fourth place in global sales.
In August, Dell reported second-quarter net income fell 18 per cent from a year ago, and lowered its full-year earnings outlook as it pursues shifts into areas such as software and cloud computing.