Boeing said its board authorized the repurchase of as many as 40 million shares, or about 5 percent of the company's outstanding shares of common stock.

Boeing also declared a quarterly dividend of 25 cents a share, payable Sept. 2 to shareholders of record Aug. 12, the company said yesterday.

Boeing expects to complete repurchasing the 10 million shares remaining under its current authorization, which was approved in December 2000. The new program and shares left under the previous one are valued at $3.03 billion, based on Friday's closing price of $60.59.

Boeing, helped by recovering demand for commercial aircraft, had $6.3 billion in cash and marketable securities as of March 31.

Boeing stock climbed $1.17, or 1.9 percent, yesterday to $61.76.

The shares have risen 19 percent so far this year and reached a 52-week intraday high of $66.09 on June 7.