ARMONK, N.Y. ( TheStreet) -- IBM ( IBM) is in a giving mood, as the company announced it will be returning even more cash to shareholders in the form of a bigger dividend and buyback.
The New York-based technology software and services company, which reported disappointing first-quarter earnings last week, said it will raise its quarterly dividend to 85 cents per share, a 13% increase. IBM beat earnings estimates but sales were flat.
IBM's board of directors also said it will buy back an additional $7 billion in stock. The company has $5.7 billion remaining in a previous program, bringing the total to $12.7 billion. IBM said it expects to request yet another share-repurchase authorization at its October board meeting. IBM President and CEO Ginni Rometty said the company has returned $137 billion to shareholders since 2000. Shares of IBM are higher in early Tuesday trading, up 1.1% to $200.73. Interested in reading more on IBM? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. -- Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: firstname.lastname@example.org