IBM Declares $0.75 Dividend and Boosts Share Repurchase Program

IBM announced that it is paying a dividend of $0.75 per share this quarter.  It also added $7 billion to an existing share repurchase program.  The company is now authorized to buy back $12.2 billion worth of shares.

Given that the company’s shares are presently trading close to its 52-week high, it is unclear why management thinks that buying back shares is a good use of shareholders’ money.

Following is some information about the company’s stock price performance, along with that of some of its competitors.

  • International Business Machines Corp. (NYSE:IBM): The shares recently traded at $181.95, down $0.30, or 0.16%, on the day.  The shares have traded in a 52-week rang eof $138.53 to $190.53 and its market capitalization is $254.16 billion.   About the company: International Business Machines Corporation provides computer solutions through the use of advanced information technology.  The Company’s solutions include technologies, systems, products, services, software, and financing.  IBM offers its products through its global sales and distribution organization, as well as through a variety of third party distributors and resellers.
  • Oracle Corporation (NASDAQ:ORCL): The shares recently traded at $32.73, down $0.14, or 0.43%, on the day.  The shares have traded in a 52-week range of $24.72 to $36.50 and its market capitalization is $165.11 billion.  About the company: Oracle Corporation supplies software for enterprise information management.  The Company offers databases and relational servers, application development and decision support tools, and enterprise business applications.  Oracle’s software runs on network computers, personal digital assistants, set-top devices, PCs, workstations, minicomputers, mainframes, and massively parallel computers.
  • Hewlett-Packard Company (NYSE:HPQ): The shares recently traded at $25.40, down $0.62, or 2.38%, on the day.  The shares have traded in a 52-week range of $21.50 to $49.39 and its market capitalization is $50.47 billion.  About the company: Hewlett-Packard Company provides imaging and printing systems, computing systems, and information technology services for business and home.  The Company’s products include laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems.  Hewlett-Packard sells its products worldwide.
  • Intel Corporation (NASDAQ:INTC): The shares recently traded at $24.78, up $0.19, or 0.79%, on the day.  The shares have traded in a 52-week range of $19.16 to $24.79 and its market capitalization is $130.12 billion.  About the company: Intel Corporation designs, manufactures, and sells computer components and related products.  The Company’s major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products.
  • Cisco Systems, Inc. (NASDAQ:CSCO): The shares recently traded at $17.62, up $0.08, or 0.51%, on the day.  The shares have traded in a 52-week range of $13.30 to $24.60 and its market capitalization is $94.53 billion.  About the company: Cisco Systems, Inc. supplies data networking products for the Internet.  The Company’s Internet Protocol-based networking solutions are installed at corporations, public institutions and telecommunications companies worldwide.  The Company’s solutions transport data, voice, and video within buildings, across campuses, and around the world.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

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