I.T. giant International Business Machines Corp. (IBM) 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 10.

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 (IBM) 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. (IBM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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