Boeing to shower shareholders with cash

US aerospace giant Boeing has announced a $14 billion share buyback and 20 percent increase in its regular quarterly dividend starting 2016 to $1.09 per share.

Boeing said the new buyback plan will replace the $12 billion plan that was previously in place of which $5.25 billion remained.

"Once again, we are demonstrating our commitment to a balanced cash deployment strategy that fuels investments in our people, innovation and growth, and returns significant value to our shareholders," said Boeing President and Chief Executive Officer Dennis Muilenburg in a news release.

"Our strategy is rooted in a foundation of strong operating performance across our business, confidence in our team and long-term market outlook and an unmatched portfolio of products and services," he added.

Last year, the firm bought back $6.75 billion worth of its own stock.

Boeing has increased the dividend for five years in a row and has paid dividends consistently for more than 75 years.

"We continue to take a disciplined approach to managing our financial strength, channeling our strong cash flow generation toward continued investments in the business and consistent returns for our shareholders," said Boeing Chief Financial Officer Greg Smith.