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.
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.
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.
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).
Copyright © 2013 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.
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The photo-sharing site only has 10 employees, and it may be up for grabs.