NEW YORK (AP) -- EMC's stock rose Thursday as the data storage equipment maker announced its first quarterly dividend and boosted its share buyback program.
THE SPARK: EMC Corp. said that its board 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 its buyback was expanded from $1 billion for 2013, to $6 billion over the three-year period ending Dec. 31, 2015. It 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 ANALYSIS: Jefferies Peter Misek said that the announcements should help to expand EMC's potential shareholder base to include those investors focused on dividends and income.
"This move highlights the significant free cash flow generation of EMC while rewarding shareholders in the near term," he wrote.
Misek maintained a "Buy" rating and $31.50 price target.
SHARE ACTION: Up $1.23, or 5.2 percent, to $24.89 in afternoon trading. The shares have traded between $21.45 and $28.18 over the past year. For the year to date, the stock is down 6.5 percent.