Breaking News
FONT-SIZE Plus   Neg
Share SHARE

IBM Hikes Dividend, Expands Stock Buyback By $7 Bln

RELATED NEWS
Trade IBM now with 

International Business Machines Corp. (IBM: Quote) said Tuesday that its board of directors hiked the quarterly business-machines-corp.aspx'>dividend by 13 percent and also authorized $7 billion in additional funds for use in the technology giant's stock repurchase program.

The Armonk, New York-based company's board declared a regular quarterly dividend of $0.85 per common share, representing an increase of $0.10, or 13 percent, from the prior quarterly dividend of $0.75 per common share.

This marks the seventeenth year in a row that IBM has increased its quarterly cash dividend. With the payment of the June 9 dividend, IBM will have paid consecutive quarterly dividends every year since 1916.

IBM's board has authorized $7 billion in additional funds for use in the company's stock repurchase program. Including the approximately $5.7 billion remaining at the end of March from a prior authorization, the company will now have about $12.7 billion for its stock repurchase program.

IBM said it expects to request additional share repurchase authorization at the board meeting in October 2012. The company noted that it has reduced its share count by a third since the beginning of 2000.

Ginni Rometty, president and chief executive officer of IBM said, "Since 2000, we have returned over $137 billion to shareholders in the form of dividends and share repurchases. At the same time, we continue to invest in capital expenditures, acquisitions and research and development, to keep IBM at the forefront of innovation."

Last Tuesday, IBM reported a 7 percent increase in profit for the first quarter, helped by strong revenue performance at its software and technology services businesses.

Net income for the first quarter was $3.07 billion or $2.61 per share, up from $2.86 billion or $2.31 per share for the year-ago quarter. Total revenue for the quarter grew 0.3 percent to $24.67 billion from $24.61 billion in the same period last year.

IBM has been acquiring small companies to drive growth and expand product offerings. The company has plans to make $20 billion worth of acquisitions between now and 2015. During the first quarter, IBM completed the acquisitions of DemandTec., Emptoris Inc. and Green Hat.

In Tuesday's regular session, IBM is trading at $201.02 2.40 1.21 percent on a volume of 1.25 million shares.

Register
To receive FREE breaking news email alerts for International Business Machines Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving mostly higher in early trading on Tuesday, stocks have given back ground over the course of the trading session. A negative reaction to news of new European sanctions against Russia contributed to the pullback by the markets. Consumer confidence in the U.S. improved for the third consecutive month in July, according to a report released by the Conference Board on Tuesday, with the consumer confidence index jumping to its highest level in almost seven years. Stocks have moved mostly higher in early trading on Tuesday after ending the previous session roughly flat. The major averages have climbed into positive territory, although there does not seem to be much conviction behind the upward move.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.