IBM Increases Dividend For 14th Consecutive Year
- April 28, 2009
- Dividend Aristocrats, Dividend News, Dividend Stocks
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IBM (IBM: 193.13 +0.09%) announced today that they are boosting their quarterly dividend by 10% to $.55 per share.
The new dividend payout level increases IBM’s current dividend yield to 2.2%.
News of the dividend increase was welcome sign to investors after U.S. Steel (X: 31.01 +0.23%), Fortune Brands (FO: 0.00 N/A), and Sotheby’s (BID: 39.17 -1.11%) also announced significant reductions to their quarterly dividend plans.
2009 marks the 14th consecutive year that IBM has increased their quarterly cash dividend. The company has paid a quarterly dividend every year since 1916.
“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, as we are doing today” said Samuel J. Palmisano, IBM chairman, president and chief executive officer.
The dividend will be payable on June 10, 2009 to shareholders of record as of May 8, 2009.
The markets reacted positively to news of the dividend increase, sending the stock up 2% to $101.94. Since the beginning of the year, IBM’s stock has gained over 21% - making it the Dow’s top performing component stock of 2009.
