Dell in an urge of executing its commitment to grow towards profitability and operating income while expanding its enterprise solutions and services, company’s chairman and CEO, Michael Dell tell analysts at the Dell’s 2012 Analyst Meeting. Dell also announced that its Board of Directors has adopted a dividend policy under which the company intends to pay quarterly cash dividends on its common stock beginning in the third quarter of the current fiscal year.
“Dell is an end-to-end solutions provider today as we continue to build out our data center, software and services capabilities,” Mr. Dell said. “We have changed the conversation we’re having with our customers. We are a solutions company first, vertically focused, and creating more value for customers with innovative offerings that provide competitive advantage.”
Dell expects the initial dividend rate to be $0.32 per share per year, or $0.08 per share quarterly. Based on Monday’s closing price of $11.86 for Dell stock, the dividend yield would be 2.7 percent. The company expects that through the dividend and share repurchases, it will increase its target range for distribution of capital to shareholders from 10-30 percent of free cash flow to 20-35 percent.