Board approves 10% increase in quarterly cash dividend
IBM’s board of directors has authorized $3 billion for the company’s stock repurchase program in addition to approximately $3.7 billion from a prior authorization. With this new authorization, IBM will have approximately $6.7 billion for its stock repurchase program.
The company said it will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.
The IBM board of directors have declared a regular quarterly cash dividend of $0.55 per common share.The dividend declaration represents an increase of $0.05, or 10% higher than the prior quarterly dividend of $0.50 per common share.
Sam Palmisano, chairman, president and chief executive at IBM, said: IBM’s model of profitable growth and strong cash flow enables the company to continue to deliver value to our shareholders. We demonstrated this commitment by returning $2.5 billion in the first quarter through dividends and share repurchase, and our continued solid performance allows us to increase shareholder return.
Earlier this month IBM reported a 1% decline in net income to $2.29 billion for the first quarter 2009, on revenue down 11% at $21.71 billion, operating income down 2% to $3.12 billion, and diluted EPS up 4% to $1.70. It reaffirmed its outlook for a full-year profit of at least $9.20 per share, and said it is ahead of pace for its 2010 roadmap of $10 to $11 per share.