IBM approves $10 bn stock buybacks

CIOL Bureau
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ARMONK, USA: IBM, the world's largest computer service provider, said on Tuesday that its board approved an additional US$10 billion in stock buybacks. This represents nearly six per cent of the company's outstanding shares and this amount is in addition to about $2.3 billion remaining at the end of September from the $8 billion buyback approved this past April.

IBM said it will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.


With this new authorization, IBM will have approximately $12.3 billion for its stock repurchase program. IBM expects to request additional share repurchase authorization at the April 2011 board meeting, said a press release.

The board of directors also declared a regular quarterly cash dividend of $0.65 per common share, payable December 10, 2010 to stockholders of record November 10, 2010. With the payment of the December 10 dividend, IBM will have paid consecutive quarterly dividends every year since 1916, said IBM.

Samuel J. Palmisano, IBM chairman, president and chief executive officer said “IBM’s higher value, higher margin business strategy has enabled the return of $91 billion since 2003 to our shareholders through share repurchases and dividends. We’ve done this while investing to bring new products and services to market, and expanding IBM’s business into new, emerging markets.”