IBM Boosts Buyback

IBM (IBM Quote - Cramer on IBM - Stock Picks) boosted its quarterly dividend by a third and added $15 billion to its stock buyback plan. Shares rose 2%.

The Armonk, N.Y., computer corporation increased its dividend to 40 cents from 30 cents, payable June 9 to shareholders of record May 10, and bolstered its repurchase plan to a total of $16.4 billion.

The company said that, as a result of the increased share repurchase, 2007 earnings-per-share growth -- excluding any gain from the recently announced sale of its printer business -- could be 12%-14%. That's 1 to 3 points above its previous estimates.

Shares rose $1.97 to $97.18.