IBM increases its dividend 18%

Big Blue also authorizes spending an additional $8 billion to buy back shares. But the stock drops in the sell-off.

By Charley Blaine Apr 27, 2010 1:10PM

Updated at 6:32 p.m. ET

 

Amid all the gloom of the day, IBM (IBM) had some decent news for investors: Big Blue increased its dividend by 18.2% to 65 cents a share.

The company also said its board authorized the company to spend another $8 billion on share repurchases, on top of $2 billion remaining from its previous authorization. Last year the company spent about $7.5 billion buying back its own stock.

With the new stock buyback plan, IBM will have about $10 billion at its disposal to repurchase stock.

The technology giant expects to request another share buyback authorization in October.

The decision came before the company's annual meeting in Milwaukee. And it reflects the company's solid financial position.

On April 19, Big Blue reported a 16% increase in first-quarter earnings per share and a 13% increase in net income. IBM

Revenue of $22.9 billion was up 5%, although flat once the effects of a falling dollar were removed.

Free cash flow -- what's left after capital expenditures -- was up $400 million to $1.4 billion.

The decision initially won investor cheers; the stock was up as much as 1% to $132 soon after the announcement was made. But the big sell-off knocked IBM's shares down to $128.82, down 1.5%.

IBM shares are off 0.8% so far this year. In 2009, IBM was the third-best performer among the 30 stocks in the Dow Jones Industrial Average ($INDU).
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market maintained a narrow trading range on Thursday before ending the session essentially where it began. The S&P 500 added less than a point, while the small-cap Russell 2000 (-0.2%) underperformed.

Equity indices displayed early strength thanks in part to an overnight boost from better than expected economic data in China and Europe. Specifically, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), while Eurozone Manufacturing PMI ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY