IBM authorizes $10B stock buyback

AP News
Posted: Oct 26, 2010 5:18 PM
IBM authorizes $10B stock buyback

IBM Corp. on Tuesday said its board approved an additional $10 billion in stock buybacks, representing nearly 6 percent of the computer company's outstanding shares.

IBM says the new buyback authorization adds to $2.3 billion remaining from a previous $8 billion authorization, issued in April.

The company also said it plans to request permission to buy even more shares at its next April board meeting.

IBM shares rose 83 cents to $140.67.

Companies often use buybacks to take advantage of low stock prices, but IBM's stock is close to its all-time high of $143.03, hit Oct. 18, just before it reported its third-quarter results.

IBM also said its board maintained the company's 65 cent quarterly dividend.

"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," Samuel J. Palmisano, IBM chairman, president and CEO, said in a statement.