IBM boosts dividend 18 pct, extends share buyback

Apr 27, 2010 By ANDREW VANACORE , AP Business Writer

(AP) -- IBM Corp. is increasing its dividend payout by 18 percent and buying back more of its stock, offering more signals of confidence in the technology industry's rebound.

The company said Tuesday at its annual shareholders meeting, held this year in Milwaukee, that it is raising the quarterly payout to 65 cents per share. It had been 55 cents a share for the past four quarters.

has developed a habit of announcing dividend increases at its shareholder meetings. The per-share payout has more than tripled since 2006.

Investors appeared to have seen this increase coming. IBM shares slipped 89 cents to $129.84 in midday trading amid a broader market decline.

IBM, which is based in Armonk, N.Y., also said its board has authorized the use of $8 billion for buying back its stock. The company now has $10 billion available for that purpose.

IBM has bought back more than $100 billion of its stock since 1995. The company says it still has plenty left over to invest in its businesses.

"This company, as a result of the investments made over the past eight years, has become very profitable with substantial cash flow," IBM's Jesse Greene, vice president for , said in an interview. "We have the cash to make investments for the future and return cash to our investors."

Greene noted that IBM, which brought in more than $95 billion in revenue in 2009, continued to put its usual $6 billion a year into research and development even during the .

IBM's decision to return more cash to shareholders provides another sign of confidence from the technology sector as it rebounds from the recession. Last week IBM increased its profit forecast for 2010 to $11.20 per share.

Other positive signs have come this month from tech bellwethers such as Corp., which reported a 44 percent jump in revenue for the first quarter.

Explore further: The New York Times to cut 100 newsroom jobs

not rated yet
add to favorites email to friend print save as pdf

Related Stories

IBM's earnings indicate tech spending picking up

Apr 19, 2010

(AP) -- IBM Corp. said Monday its first-quarter profit jumped 13 percent, and the company offered evidence that corporate technology spending is rebounding after the recession.

IBM's profit rises 9 pct, revenue growth resumes

Jan 19, 2010

(AP) -- IBM Corp. said Tuesday that it managed a 9 percent increase in profit in the last quarter as the technology company's revenue grew for the first time in a year and a half.

IBM stumbles on 1Q sales dip; profit beats Street

Apr 20, 2009

(AP) -- IBM Corp.'s first-quarter results slipped as all its major business units suffered declines, but the company backed its bullish outlook for 2009 on Monday, reflecting its belief that a broad mix of services and software ...

IBM scoops up software maker SPSS in $1.2B deal

Jul 28, 2009

(AP) -- IBM Corp. is bulking up its most profitable division with a $1.2 billion acquisition of business software provider SPSS Inc., a deal that also reflects the power of wealthy technology companies to throw their money ...

Recommended for you

The New York Times to cut 100 newsroom jobs

6 hours ago

The New York Times Co. says it is cutting about 100 newsroom jobs through buyouts and layoffs in an effort to trim costs and focus more on its digital efforts.

What's PayPal's first solo move?

Sep 30, 2014

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

Sep 30, 2014

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

User comments : 0