Dell investors get cash back as it bulks up enterprise division

Summary:The company has announced plans to pay back shareholders with dividends while keeping up spending on its enterprise solutions and services portfolio

Dell is shifting some of its financial policies with the hopes of putting more money in the hands of stockholders while building its enterprise divisions.

Dell chief executive and chairman Michael Dell said on Tuesday that the company's board of directors have adopted new policies that will result in quarterly cash dividend payments on its common stock starting during the third quarter of the current fiscal year.

Chief financial officer Brian Gladden acknowledged in prepared remarks that this will require a balancing act between quarterly dividend payments and new investments within Dell's enterprise solutions and services portfolio. However, Dell remains optimistic in that field — mainly because it looks like that's where the Round Rock, Texas-based corporation is making most of its money these days, as explained in a statement.

For more on this ZDNet UK-selected story, see Dell to start quarterly cash dividend payments in Q3 on ZDNet.com.


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Topics: Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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