Dell Inc. (NASDAQ:DELL) has hiked its dividend after reporting record full-year operating income, but warned on the outlook.
Operating income was up 24% to US$5.8bn in the year to 3 February 2023, while non-generally accepted accounting principles (GAAP) operating income was up 11% to US$8.6bn.
As a result, the technologies and computer hardware company hiked its dividend by 12% to US$1.48, according to a statement.
Full-year revenues were flat at US$102.3bn, with the fourth quarter seeing income slip 11% compared to the same period last year to US$25bn.
Given demand trends, Dell said it expects first-quarter revenue for the current year to be "seasonally lower than average", down roughly 17% to 21%, while full-year 2024 revenue is expected to fall between 12% and 18%.
In full-year 2023, revenue in Dell's infrastructure solutions group was up 12% to US$38.4bn, a record year, although its client solutions arm slipped 5%, delivering revenue of US$58.2bn.
Dell said it ended Q4 2023 with remaining performance obligations of US$40bn, deferred revenue of US$30.3bn and recurring revenue of roughly US$5.6bn.
US$3.8bn was returned to shareholders in the fiscal year 2023 through share repurchases and dividends.
Looking ahead, co-chief operating officer Chuck Whitten said: “The long-term trends are in our favour, as data increases exponentially and we continue to help customers navigate the complexities of hybrid work, multicloud and edge.”
Dell also said chief financial officer Tom Sweet would retire by the end of its fiscal second quarter, with Yvonne McGill named as his successor.