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

Thu May 30, 2013 7:38am EDT

May 30 (Reuters) - 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.

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.

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