Last week, Fool contributor Rich Smith argued that Boeing (NYSE:BA) should follow in the footsteps of Northrop Grumman (NYSE:NOC) and buy back more of its stock. Just a few days later, Boeing seems to have agreed. In a recent investor presentation, its CFO promised investors that at the same time as it maintains an $11 billion war chest, the company will devote 80% of its free cash flow to returning wealth to its shareholders.

Dividends, buybacks -- there are several options for Boeing if it wants to give money back to its owners. So why does Rich think buying back Boeing stock is the way to go? Listen in as he explains.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.