Corning Boosts Dividend 20%, Unveils $1.5 Billion Buyback

Corning Incorporated's GLW board boosted its quarterly dividend 20 percent and unveiled a $1.5 billion buyback program.

The company's shares gained more than 2 percent on the news, closing Wednesday at $21.54.

Chief Executive Wendell P. Weeks said the company will "devote our future excess free cash flow to additional share repurchase programs."

With a market capitalization of $27.6 billion, Corning said it can continue to spend on developing new products and growth while funding the buyback and increased dividend.

The buyback expires at the end of 2016. The increased dividend of $0.12 a share is payable March 31 to shareholders of record on February 27.

Corning last month posted third-quarter core earnings growth of 21 percent to $0.40 a share, and the company said at the time its board had agreed to accelerate its evaluation of future share repurchases and dividend increases.