I.T. giant International Business Machines Corp. (
) on Tuesday lifted its quarterly dividend payout by 13% and
announced a big increase in its share repurchase program.
The company's new dividend of 85 cents per share (up from 75
cents) will be paid on June 9 to shareholders of record as of May
IBM's board of directors also authorized an additional $7
billion worth of share buybacks. In total, the company now plans to
repurchase $12.7 billion of its own shares.
IBM shares rose $3.22, or +1.6%, in morning trading Tuesday.
The Bottom Line
Shares of IBM Corp (
) will now have a 1.71% dividend yield, based on the higher
dividend payout and last night's closing stock price of $198.62.
The stock has technical support in the $190-$194 price area. The
shares are trading near all-time highs.
International Business Machines Corp. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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