Baker Hughes Incorporated (NYSE: BHI) has decided to release some of its cash as a reward for its shareholders.    The company has just jacked up its dividend to $0.15 per share, up about 15% from the previous $0.13 per share dividend.  The company has also announced that it will  repurchase up to $1 billion of the company’s common stock in addition to the existing stock repurchase plan which will now have approximately $1.246 billion remaining. 

For a comparison on what this looks like, the stock yield based upon today’s prices is roughly 0.7%.  As far as comparing the share buyback, its market cap is just north of $25 Billion. 

Shares are down only about 0.3% today immediately before the close.

Jon C. Ogg
July 24, 2008