By Matt Grossman

 

Dell Technologies Inc. Thursday said it plans to embark on a $5 billion share-repurchase program starting in November, and forecast revenue will grow by 3% to 4% annually through fiscal 2026.

The Round Rock, Texas-based computing company said its new buyback program will be effective in November, upon the projected completion of the spinoff of the VMware business. That move will likely grant Dell an investment-grade corporate-family credit rating, Dell said.

Dell also said it plans to initiate a quarterly dividend in the first quarter of its 2023 fiscal year, aiming for an annual dividend of about $1 billion.

Dell's multi-year guidance came ahead of a Thursday meeting with sector analysts. As part of the guidance, Dell said it expects its adjusted earnings per share will grow at an annual rate of 6% or more through the 2026 fiscal year.

The company affirmed previously issued guidance for the third quarter of its 2022 fiscal year, calling for revenue growth in the mid to high teens and operating income 1% to 2% higher sequentially.

 

Write to Matt Grossman at matt.grossman@wsj.com

 

(END) Dow Jones Newswires

September 23, 2021 08:49 ET (12:49 GMT)

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