International Business Machines Corp. (IBM), the world's biggest computer services firm, on Tuesday raised its dividend 12% and announced an additional $5 billion stock repurchase authorization to appease investors following a disappointing earnings report earlier in the month.
Big Blue raised its regular quarterly cash dividend from $0.85 per share to $0.95 per share, payable on June 10 to stockholders of record on May 10.
This is the 18th year in a row that IBM has increased its quarterly cash dividend, and the tenth year in a row of double-digit percent increases. The company has increased its dividend by over 600% since the beginning of 2000.
IBM also said its board of directors has authorized $5 billion in additional funds for use in the company's stock repurchase program. This is in addition to about $6.2 billion remaining at the end of March from a prior authorization. With the additional authorization, IBM now has about $11.2 billion in its stock repurchase program.
On April 18, the Armonk, New York-based company reported first quarter revenue and earnings below Wall Street expectations, a rare miss for the company.
The company had $11.99 billion in cash, cash equivalents and marketable securities at March 31.
IBM shares are currently trading at $201.14, up $1.99 or 1.00%.
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