EMC raises stock buyback plan to $6 billion, starts dividend


EMC Corp increased its share buyback program to $6 billion from $1 billion by end-2015 and said it would start paying out a quarterly cash dividend of 10 cents per share.

Shares of the data storage equipment maker rose almost 4 percent before the bell. The stock, which has risen 5 percent in the last month, closed at $23.66 on the New York Stock Exchange on Wednesday.

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The first quarterly dividend will be paid on July 23 to shareholders of record on July 1, the company said on Thursday.

Rival NetApp Inc , under pressure from activist shareholder Elliott Management, said earlier this month that it would spend about $1 billion in the next four months to buy back shares. The company also initiated a quarterly dividend of 15 cents per share.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Roshni Menon)