Struggling computer maker Dell has said it will use some of its cash stockpile to pay shareholder dividends as it pursues a shift to services.
The company will pay 32 cents per share annually, amounting to an annual expense of $560m, from a cash stockpile of $17.2 billion.
Analysts said the move was long overdue and follows similar moves by tech firms like Apple and Hewlett-Packard.
Chairman and chief executive Michael Dell told CNBC television in the US that in view of the PC maker's cash position and a shift to a more diversified business model, "we feel confident this is a great time to return this capital to shareholders now in perpetuity."
The company said in a statement it was taking steps to boost shareholder value through stock buybacks and the new dividend, and would be expanding its services to be more diversified.
"Dell is an end-to-end solutions provider today as we continue to build out our data centre, software and services capabilities," Michael Dell said.
"We have changed the conversation we're having with our customers. We are a solutions company first, vertically focused, and creating more value for customers with innovative offerings that provide competitive advantage," he added.
Dell's chief financial officer Brian Gladden said, "The payment of a quarterly cash dividend to Dell's shareholders adds another element to our disciplined capital allocation strategy."
Dell, once the biggest maker of PCs, has been hurt by a shift to tablet computers. The company, which has slipped to third place in the global PC market, said last month its profit in the first fiscal quarter fell to $635m.
Last year, Dell said it would halt sales of its Android tablet computer in the US market, after failing to gain traction against rivals such as Amazon's Kindle Fire and Apple's iPad.
