Boeing Boosts Stock Buyback to $12 Billion

Boeing is increasing its annual share buyback to $12 billion and raising its quarterly dividend from $0.73 to $0.91, exceeding analyst expectations. The company completed $6 billion in buybacks for 2014. Buyback authorizations allow flexibility but do not guarantee full execution. The market appreciates these cash returns, though they reflect financial engineering rather than direct business reinvestment. Companies often prioritize shareholder returns over capital expenditures, seeking external growth opportunities.

What is the significance of the board's authorization for buybacks mentioned in the text?

What does the term 'financial engineering' refer to in the context of the text?