Dell to pay first dividend in third quarter

AUSTIN, Texas (AP) -- Computer maker Dell Inc. will soon pay its first dividend.

CEO Michael Dell said Tuesday that the company's strong cash flow will allow it to pay a quarterly dividend of 8 cents per share beginning in the third quarter.

That represents a dividend yield of 2.7 percent based on the closing price of the company's shares on Monday

Dell, based in Austin, Texas, had been among many technology companies that did not pay dividends.

The dividend announcement coincided with the start of Dell's annual analysts meeting.

Dell shares rose 37 cents, or 3.1 percent, to $12.34 in after-hours trading.

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