Altera to Start Paying Dividend, Ups Stock Buyback

Altera, a maker of microchips for cell phone networking and industrial equipment, said it would start paying a stock dividend and increase the number of shares it plans to repurchase.

Altera said it would pay a quarterly dividend of 4 cents a share to shareholders of record on May 10. It also plans to buy back up to an additional 50 million shares. So far this year, the company has repurchased 7.2 million shares.

Shares of Altera rose 2.2% to $20.50 in after-hours trade from a close of $20.05 on the Nasdaq.