IBM Shares Reacting Well To Diviend Hike, Buyback (IBM)

Shares of International Business Machines Corp.

are reacting well to the news earlier today that the company is buying back $8 billion worth of its stock, and is raising its dividend by 15%. The company said the quarterly dividend is going to be raised by 15%, up 10 cents to 75 cents per share. The total buyback will be $12.7 billion, with the $8 billion announcement made earlier. Last week, IBM raised its earnings guidance, saying it expects to earn at least $13.15 per share this year. Samuel J. Palmisano, IBM chairman, president and chief executive officer said “Since 2003, we have returned over $100 billion to shareholders in the form of dividends and share repurchases, while continuing to invest in capital expenditures, acquisitions and research and development. Our commitment to delivering value to our shareholders remains as important today, as it has ever been.” At last check, shares of IBM were up $1.28 to $168.95, a gain of 0.76%.