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May 16, 2008 8:05:44 AM CDT

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IBM Raises Dividend 25%  

Posted Apr 29, 08 2:20 PM CDT in Technology,  Business    Editor's Choice

(newser) – IBM raised its quarterly dividend for the thirteenth consecutive year today after posting strong Q1 earnings two weeks ago, the Wall Street Journal reports. The firm expects to pay $2.5 billion to shareholders this year after raising its dividend 25%, from 40 to 50 cents. IBM also expects to pass along another $12 billion to investors through stock buybacks.

An exec says IBM prefers buybacks to dividend payouts because they afford more flexibility with its cash pile, which it uses for acquisitions. A dividend rate is harder to cut back without making waves with investors, and IBM always prefers acquisitions to any kind of payout: "The primary objective is to be able to invest for growth," explains a VP.

Source Wall Street Journal

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IBM Raises Dividend 25%
The IBM logo at the main campus in Research Triangle Park, N.C. is seen in this July 31, 2007 file photo.   (AP Photo/Karen Tam, file)
IBM Raises Dividend 25%
A worker cleans up a wall at the IBM booth on the CeBIT exhibition in Hanover, northern Germany, on Friday, Feb. 29, 2008.   (AP Photo/Joerg Sarbach)
IBM Raises Dividend 25%
The entrance to the IBM manufacturing plant in Essex Junction, Vt. is seen Wednesday, April 16, 2008.   (AP Photo/Toby Talbot)
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investors  • shareholders  • IBM  • first quarter earnings  • information technology  • computers  • stock buyback


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