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Dell Boosts Dividends by 18%, $10 Billion Buyback Program Launches

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March 3 - Dell Technologies (DELL, Financial) is set to reward shareholders as it hikes its annual dividend by 18% to $2.10 per share and unveils an additional $10 billion share buyback program. The announcement, made on Feb. 27 on its earnings call, underscores management's confidence in the company's future free cash flow amid evolving market dynamics.

The payment of dividends through 700.5 million outstanding shares amounts to $1.471 billion in expenses, representing a minor increase from the previous year's expenses. Also, Q4 revenue at the company achieved a 7.2% yearly increase thanks to strong performance in its Infrastructure Solutions Group that was driven by growing AI server demand. Operating cash flow maintains a strong standing that allows the company to continue its dividend payments and buyback program despite a 53% decline in adjusted free cash flow margins from last year.

This article first appeared on GuruFocus.