IBM hikes dividend 10%, ups buyback

(CNNMoney.com) -- IBM said Tuesday that it will increase its quarterly dividend by 10% and will repurchase an additional $3 billion of its stock.

The Armonk, N.Y.-based tech company will pay a dividend of 55 cents per share on June 10 to shareholders of record on May 8. That's up 5 cents from its most recent dividend and marks the 14th year in a row that IBM has hiked its dividend. Last year, the company raised its quarterly payout by 25%.

IBM also said it would extend its share repurchase program after the board authorized another $3 billion of buybacks. As of March 31, the company had $3.7 billion remaining from its previous $15 billion repurchase authorization in February 2008, giving IBM authorization to buy back a total of $6.7 billion so far in 2009.

Though the company's dividend increase and share repurchase allotment is down from last year, an IBM spokesman said economic headwinds were not a factor.

"We think it's an appropriate amount that allows the company to reinvest in business," he said.

The moves come amid a slew of announcements from IBM in the past two weeks, including a commitment to cloud computing, a return to the IBM branding on its networking unit and the development of a computer that can compete on the TV game show "Jeopardy!"

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