Computer industry

IBM Increases Quarterly Cash Dividend by 50%

Strategic Insights

Apr 25, 2006 — 1 min read

IBM declared a regular quarterly cash dividend of $0.30 per common share, a 50% increase from the previous dividend of $0.20 per common share, representing the largest percentage increase in the company's history. This marks the eleventh consecutive year that IBM has increased its quarterly cash dividend, resulting in a total increase of 380% since 1996. Additionally, the board authorized $4 billion in new funds for its stock repurchase program, bringing the total available funds to approximately $6.5 billion.

Key Takeaways:

IBM declared a regular quarterly cash dividend of $0.30 per common share, a 50% increase from the previous dividend of $0.20 per common share.
The current dividend represents the largest percentage increase in the company's history.
This marks the eleventh consecutive year that IBM has increased its quarterly cash dividend, resulting in a total increase of 380% since 1996.
The board authorized $4 billion in new funds for its stock repurchase program, bringing the total available funds to approximately $6.5 billion.
IBM will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.
The payment of the dividend will be made on June 10, 2006, to stockholders of record as of May 10, 2006.
IBM has paid 362 consecutive quarterly dividends, starting in 1916.
IBM's Treasurer, Jesse Greene, provided a Q&A on the company's dividend and buyback strategy.

Statistics:

$0.30 per common share: new quarterly cash dividend
50%: percentage increase in dividend from $0.20 to $0.30 per common share
11 years: consecutive years that IBM has increased its quarterly cash dividend
380%: total increase in dividend since 1996
$4 billion: new funds authorized for stock repurchase program
$6.5 billion: total available funds for stock repurchase program
2.5 billion: remaining funds for stock repurchase from prior authorization
362: consecutive quarterly dividends paid by IBM, starting in 1916

Sources:

IBM press release
Business Wire news release
IBM investor Web site
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