ROUND ROCK, Tex. (TheStreet) — Dell’s decision to start paying a dividend was music to the ears of its long-suffering investors, pushing the company’s stock up more than 2% on Wednesday.

Shares of Dell have plunged more than 21% over the last 12 months with investors questioning the company’s ability to expand beyond its traditional PC business and fend off rivals such as HP and Apple. The company’s stock, however, closed up 2.55% at $12.27 on Wednesday. Dell announced plans to start paying a dividend on Tuesday

“The stock price is trading near its lows and last night’s cash dividend announcement provides value investors with a reason to own the stock — we applaud this decision,,” explained Brian White, an analyst at Topeka Capital Markets, in a note released on Wednesday. “Dell’s balance sheet remains healthy with $17.2 billion in cash and $9 billion in debt, while free cash flow generation was $4.9 billion in fiscal year 2012 – as such, we believe Dell has the opportunity to expand its cash dividend over time.” …

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