Boeing

(BA) - Get Report

raised its dividend for a second time this year.

The Chicago aerospace giant announced Monday that its board approved a 25% increase, which will lift the quarterly dividend to 25 cents from 20 cents. The extra 5 cents comes out to about $42 million a quarter, given Boeing's 840 million shares outstanding.

The annual $1 dividend represents a yield of about 1.9% over Boeing's closing price of $52.67.

On May 3, Boeing announced a previous quarterly dividend increase of 17.5%

"Increasing the dividend is part of our balanced cash deployment strategy and reflects strong operating performance, an improving outlook, excellent cash generation and our commitment to deliver value to shareholders," said Harry Stonecipher, Boeing's chief executive officer, in a news release.

The increased dividend is payable March 4, 2005, to shareholders of record as of Feb. 11, 2005.

Boeing shares finished Monday's session up 25 cents, or 0.5%, at $52.67.