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EMC boosts buyback, declares dividend

HOPKINTON, Mass. (AP) -- EMC Corp. will ramp up its stock buyback program sharply and begin paying a quarterly cash dividend.

Shares rose more than 3 percent in premarket trading.

EMC buyback authorization was expanded from $1 billion for 2013, to $6 billion over the three-year period ending Dec. 31, 2015.

The data storage equipment maker plans to repurchase $3.5 billion in stock by the end of the second quarter of 2014. That amount includes the $500 million EMC has spent on buybacks so far this year, the company said.

The board also approved a new quarterly cash dividend of 10 cents. The dividend will be paid on July 23 to shareholders of record as of July 1.

The company also said it plans to add debt to its capital structure in the near term, boosting its financial flexibility.

EMC doesn't expect the new measures to have a significant impact on results this year.

EMC shares rose 84 cents $24.50 before the opening bell.