Chairman and CEO Jim McNerney said the moves reflect operational performance, increasing cash flow and confidence in the future.
The increase in the share buyback program is in addition to the $800 million remaining authority in Boeing's current stock repurchase program. Boeing will resume buying back its own stock in January and it expects repurchases to be made over the next two to three years.
The Chicago-based company said it has declared a quarterly dividend of 73 cents per share payable March 7, 2014, to shareholders of record Feb. 14.
Following the announcement, Boeing shares rose $1.78, or 1.8 percent, to $136.50 in after-hours trading. They closed at $134.72 Monday.