IBM raises dividend, to buy back more shares

International Business Machines Corp said on Tuesday that it would begin paying a quarterly dividend of 55 cents per share, up 10 percent from the previous 50 cents. It is the 14th year in a row for the company to raise its dividend.

IBM (IBM.NY)also said its board authorized $3 billion in additional funds to buy back shares. It had around $3.7 billion remaining at the end of March from a previously authorized buyback plan, it said.

IBM shares rose 1.2 percent to $101.15 in early trading. IBM's quarterly revenue fell by 11 percent in the first quarter, but cost-cuts helped limit the fall in net profit. Analysts say its shift to higher-margin software and services from hardware has helped shield it from the worst of the global economic slowdown.

(Reporting by Ritsuko Ando, editing by Gerald E. McCormick)