Dell Details First-Ever Dividend Payout

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Published September 06, 2012

| FOXBusiness

Struggling PC maker Dell (DELL) officially joined the dividend party on Thursday, unveiling its first-ever quarterly dividend.

The dividend announcement helped lift Dell’s beaten-down stock just over 1% in after-market action.

The Round Rock, Texas-based company said its board of directors signed off on plans to pay a quarterly cash dividend of 8 cents per share.

The move “is intended to help contribute to long-term shareholder value,” Brian Gladden, Dell’s chief financial officer, said in a statement. “It is another element of our disciplined capital allocation strategy that includes an ongoing share-repurchase program and investments in research and development, capital expenditures and acquisitions.”

The No. 2 U.S. PC maker, had previously announced plans in June to begin paying a dividend.

Dell is joining a number of maturing technology companies returning cash to shareholders through dividends, including Apple (AAPL) and Cisco (CSCO).

Dell has struggled increasingly in recent quarters amid trouble in its PC division. Last month the company disclosed an 18% decline in second-quarter earnings amid a deeper-than-expected 22% dive in sales, prompting management to slash its full-year outlook.

The dividend is payable on October 22 to shareholders of record as of the close of business on October 1.

Shares of Dell rose 1.24% to $10.65 in after-market trading. If the rally holds, it won’t make much of a dent in Dell’s 2012 tumble of about 28%.

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