Apr 28, 2010

IBM Raises Dividend, Plans Stock Buyback and live concerns

IBM plans to raise its quarterly dividend by 18% to 65 cents per share, which is good for a 2% annualized yield, according to Investor’s Business Daily. The company has been raising its dividend for 15 years in a row.

IBD reported that IBM announced at its shareholder meeting that it will buy back $8 billion worth of stock, on top of the $2 billion repurchasing plan the company announced in March. Further stock buybacks would be considered in October.

Stock buybacks are often received positively by investors because they indicate that a company believes in its own stock, according to IBD. Repurchases can also reduce the supply of shares in the market, another positive for the stock.

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