Boeing increases dividend by 25 percent and plans to buy back up to $12B in shares

Boeing said Monday that it is increasing its quarterly dividend and increasing its stock buyback plan to $12 billion.

The company said its business is strong and there is a "solid growth outlook" for commercial aviation. Shares rose 2.9 percent in extended trading.

The Chicago-headquartered aerospace company said it was replacing its prior buyback program, which had $4.8 billion remaining. It bought $6 billion worth of shares in 2014. Boeing expects to buy back the stock under the new program over the next two to three years.

Boeing also said Monday that it lifted its dividend 25 percent, to 91 cents per share. It's payable on March 6.

Shares of The Boeing Co. increased $1.31 to close at $122.08 Monday, but have dropped 11 percent this year.