IBM Corp, in keeping with the company’s long-standing policy of earnings per share management through share repurchases, the board also authorized the buy-back of up to an additional $3.5bn worth of common stock. Since January 31, 1995, IBM has repurchased roughly $27bn in stock. Over the past several years, Big Blue has typically authorized the buybacks in $3.5bn increments every six months. The last authorization came in October of last year and currently has about $700m left under it.
The company also said Tuesday that it board of directors has approved a 9% increase in the company’s quarterly dividend, raising it from $0.22 to $0.24 per common share. The company says it is the fourth time in as many years that it has made such an increase, with the overall dividend rate up by 92% since 1996, including the latest move. Shareholders have also approved a two- for-one stock split, payable on May 26 to shareholders of record as of May 10. IBM shares rose $2.125 to close at $212 on Tuesday.
