Personal computer maker Dell Inc. (DELL) announced on Tuesday that the company will pay a dividend for the first time from the third-quarter. Boosted by the good news, DELL stock price rose 2.51% in after-hours trading on Tuesday. The company located in Round Rock, Texas, said that it will distribute a dividend of 32 cents per year, equivalent to 8 cents each quarter.
Dell said if on the basis of DELL stock closing price of $11.86 per share on Monday, the company’s dividend yield will be 2.7%. According to the plan, Dell will hold a conference with financial analyst on Wednesday. Dell intends to raise the return on equity rate from 10%-30% to 20%-30% of the free cash flow through dividend payout and share repurchase program.
Data show that in the after-hours trading Tuesday, DELL stock price rose 29 cents to $12.26, or 2.42%. As of the closing bell, DELL stock price has fallen more than 18%. Over the past 52 weeks, DELL stock price fluctuated between $11.68 and $18.36, and the current price of $11.97 is 34.80% off the peak.