Dell Technologies Expects Steady Growth and Expands Share Buyback Plan
Dell Technologies, a leading technology company, has announced its long-term growth projections and plans to enhance shareholder value. The company expects a compounded annual revenue growth of 3-4% over the long term, demonstrating its commitment to sustainable expansion. In addition, Dell has increased its share buyback plan by $5 billion, signaling confidence in its future prospects.
To further reward its shareholders, Dell plans to raise its quarterly dividend by 10% or more every year through fiscal 2028. This move aligns with the company’s strategy to return over 80% of adjusted free cash flow to shareholders through a combination of dividends and share buybacks.
While Dell faced challenges due to a global slowdown in the PC market, it has shown resilience by reporting a stabilizing demand outlook for computers and servers. The company recently raised its full-year revenue and profit forecast, reflecting positive signs in the industry. Dell’s adjusted earnings per share target of 8% annual growth or better over the long term reinforces its commitment to delivering value to its investors.
Although Dell’s shares experienced a decline of over 2% in premarket trading, the company’s stock has seen significant growth this year, climbing 67%. This positive performance follows a drop of nearly 30% in 2022. Dell’s ability to adapt to market conditions and its focus on innovation have contributed to its success.
Based in Bengaluru, India, Dell Technologies continues to make strategic moves to position itself for long-term growth. With a strong track record and a commitment to shareholder value, the company remains a key player in the technology industry.