ARMONK, New York. ( TheStreet) -- IBM ( IBM) plans to devote an additional $7 billion to share buybacks, the company's board announced on Tuesday. The $7 billion authorization is in addition to around $5.2 billion left over from a previous repurchase program, leaving IBM with approximately $12.2 billion for buybacks.
IBM bolstered its share repurchase program on Tuesday.
The Dow component plans to repurchase shares on the open market or in private transactions from time to time. "IBM's higher value, higher margin business strategy has enabled the return of over $109 billion since 2003 to our shareholders through share repurchases and dividends," said IBM CEO Sam Palmisano in a press release. Big Blue also declared its regular quarterly cash dividend of 75 cents a share on Tuesday, which will be payable on Dec. 10. The server, software and services giant hiked its dividend from 65 to 75 cents a share in June. IBM, however, was punished by investors earlier this month when it missed Wall Street's third-quarter revenue estimate, although the tech bellwether is still perceived as one of the more dependable tech stocks. Shares of IBM dipped 71 cents, or 0.39%, to $181.54 on Tuesday. -- Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org