(Reuters) – Dell Technologies expects a compounded annual revenue growth of 3-4% in the long term. The company has also announced an increase of $5 billion in its share buyback plan, in addition to its existing $5 billion plan. Furthermore, Dell plans to raise its quarterly dividend by 10% or more annually until fiscal 2028. As a result of this announcement, the company’s shares dropped nearly 3% in premarket trading.
This optimistic outlook comes as Dell Technologies continues to pursue growth and profitability in the highly competitive technology industry. By focusing on expanding its revenue streams, the company aims to sustain steady and consistent growth over the long term.
The increase in Dell’s share buyback plan reflects the company’s confidence in its financial stability and the belief that investing in its own shares is a worthwhile endeavor. Share buybacks reduce the number of outstanding shares, thereby increasing the ownership stake of existing shareholders. This can lead to an increase in the company’s earnings per share and potentially boost stock prices.
By raising its quarterly dividend, Dell also seeks to provide additional returns to its shareholders. Dividends are a portion of a company’s profits paid out to shareholders on a regular basis. Increasing the dividend payout is often seen as a sign of financial health and confidence in future earnings.
However, despite these positive announcements, Dell’s shares experienced a decline in premarket trading. Market reactions to company announcements can be influenced by various factors, such as investor sentiment, overall market conditions, and expectations for company performance.
“The market’s initial reaction to Dell’s announcement may be due to various reasons, including short-term profit taking or concerns about future growth prospects,” said Yuvraj Malik, a financial analyst at Reuters.
Dell Technologies will continue to focus on executing its strategic plans to drive growth and enhance shareholder value. The company’s long-term goals include expanding its customer base, developing new products and services, and leveraging emerging technologies to create new revenue opportunities.
As Yuvraj Malik reports from Bengaluru, this news was edited by Shounak Dasgupta and Anil D’Silva.
Credit: The Star : Tech Feed
