IBM Boosts Dividend, Increases Buyback

[HardOCP News]

IBM seems to be doing well. The company has just increased its dividend payout by ten cents and authorized an aggressive ramp-up of its share buyback program earlier today.

The moves, announced at the start of IBM's annual shareholder meeting, came exactly one year after the technology company's last dividend increase. Back then, IBM raised the quarterly dividend by half, to 30 cents per share from 20. The new quarterly dividend will be 40 cents per share.

 

[Ockie]

Probably doing well from the sale of Lenovo.

 

[xX_Jack_Carver_Xx]

Busily engaging in one of the most corrosive and pathetic acts a corporation can engage in... stock buybacks.

As a shareholder.....

Who the FK gave these ckckrs permission to use MY DIVIDEND MONEY to buy back stock on the open market. That money, those profits belong in MY POCKET and I'll decide what to do with them.

IBM has shifted from the greatest R+D engine in the private sector, to just another PoS corporation run by jagoff's playing games. Using MY MONEY to artificially boost stock prices SHORT TERM, while weakening the corporation by squandering critical capital, and weakening the power of the stockholders by increasing the % of stock controlled by the corporation and VOTED by the CEO/board as a self sustaining perpetual motion machine keeping PoS ckskrs in the management leadership positions.

Over and over again.

Thankyou Republican congress for allowing the stock buyback concept to come into existence.

It should be ILLEGAL for a corporation to purchase it's own stock on the market. How is it NOT insider trading by definition. How is it NOT stock price manipulation and fraud. How is it NOT theft of the company by the management using the stockholders OWN MONEY to purchase ownership.

Shareholders must unite and put an end to this insanity.

PS: Gee I hope this doesn't become part of that "offensive content" the online world is apparently running rampent with.

 

[mavalpha]

Who the FK gave these ckckrs permission to use MY DIVIDEND MONEY to buy back stock on the open market. That money, those profits belong in MY POCKET and I'll decide what to do with them.

Last I checked, you're still getting your dividends...
[qutoe]IBM has shifted from the greatest R+D engine in the private sector, to just another PoS corporation run by jagoff's playing games. Using MY MONEY to artificially boost stock prices SHORT TERM, while weakening the corporation by squandering critical capital, and weakening the power of the stockholders by increasing the % of stock controlled by the corporation and VOTED by the CEO/board as a self sustaining perpetual motion machine keeping PoS ckskrs in the management leadership positions.

Over and over again.

Thankyou Republican congress for allowing the stock buyback concept to come into existence.

It should be ILLEGAL for a corporation to purchase it's own stock on the market. How is it NOT insider trading by definition. How is it NOT stock price manipulation and fraud. How is it NOT theft of the company by the management using the stockholders OWN MONEY to purchase ownership.

Shareholders must unite and put an end to this insanity.

PS: Gee I hope this doesn't become part of that "offensive content" the online world is apparently running rampent with.[/QUOTE]
And what's wrong with a company changing its economic stance over the course of several years and deciding to go private once more?

In fact, ever since the Sarbanes-Oxley Act, more and more businesses are making it quite clear that they want nothing to do with the American Stock Exchanges. Many of them are engaging in aggressive stock buybacks and privatizing, while others are delisting themselves on the NYSE and relisting in London, Tokyo, &c. The SOA is another example of lawmakers passing well-intentioned bills with absolutely no understanding of their consequences or implementations.

 

[mavalpha]

Pardon the double-post, formatting made my last post illegible. An edit button would help greatly.



So, what's wrong with a company changing its economic stance over the course of several years and deciding to go private once more?

In fact, ever since the Sarbanes-Oxley Act, more and more businesses are making it quite clear that they want nothing to do with the American Stock Exchanges. Many of them are engaging in aggressive stock buybacks and privatizing, while others are delisting themselves on the NYSE and relisting in London, Tokyo, &c. The SOA is another example of lawmakers passing well-intentioned bills with absolutely no understanding of their consequences or implementations.

 

[Ockie]

Busily engaging in one of the most corrosive and pathetic acts a corporation can engage in... stock buybacks.

As a shareholder.....

Who the FK gave these ckckrs permission to use MY DIVIDEND MONEY to buy back stock on the open market. That money, those profits belong in MY POCKET and I'll decide what to do with them.

IBM has shifted from the greatest R+D engine in the private sector, to just another PoS corporation run by jagoff's playing games. Using MY MONEY to artificially boost stock prices SHORT TERM, while weakening the corporation by squandering critical capital, and weakening the power of the stockholders by increasing the % of stock controlled by the corporation and VOTED by the CEO/board as a self sustaining perpetual motion machine keeping PoS ckskrs in the management leadership positions.

Over and over again.

Thankyou Republican congress for allowing the stock buyback concept to come into existence.

It should be ILLEGAL for a corporation to purchase it's own stock on the market. How is it NOT insider trading by definition. How is it NOT stock price manipulation and fraud. How is it NOT theft of the company by the management using the stockholders OWN MONEY to purchase ownership.

Shareholders must unite and put an end to this insanity.

PS: Gee I hope this doesn't become part of that "offensive content" the online world is apparently running rampent with.

Seems like to me you are squeezing in your political agenda with this rant. Become a premium shareholder or become a majority shareholder so you can have a saying in things too. Just because you own some stock, doesn't really make your voice heard or your opinion count.

 

[[Spectre]]

It should be ILLEGAL for a corporation to purchase it's own stock on the market. How is it NOT insider trading by definition. How is it NOT stock price manipulation and fraud. How is it NOT theft of the company by the management using the stockholders OWN MONEY to purchase ownership.

Shareholders must unite and put an end to this insanity.

Stock by backs are quite often good for investors when they boost stock prices thereby making your investement worth more money than before...thereby makign you money as is the point of investing.

Aditionally, How else would you suggest a company be allowed to return to being private than by paying its investors back the money they have invested in the company plus the premium that stock has earned?

 

[Ockie]

Yep, also it's great for a company to regain control once they have some stability. I don't think denying a company from regaining control on their own product should be banned, and quite frankly, competitors can do a hostile takeover in the same fashion even if that law was still around.

I think buying back has many advantages, look a the most recent companies doing so, for the interest in protecting their business (Ford is an example, they wish to buy back and go private).

 

[Rembrandt]

You have to understand that the average joe blow that invests in stock in any corporation is not going to have a major return on their investment. There are always exceptions to the rule but it is seldom and you are not going to change it. The officers of a corporation uses your money for their own purposes. The top tier of management and the board mainly use your money to increase the companies value (not your stock). By doing so they can give themselves large amounts of stock options without affecting the bottom line of the corporation. It does not matter where you are in the world, that is the way it is. Those that are in power and those that give them the power (stock holders). It is the same with governments. It all boils down to how much does it take to keep a group of people in line (passive) so they can keep the power, money and influence that they have. It does not matter if it is a capitalist, free enterprise, communist or socialist way of life because there will always be those that have the power at the top and dish out only what they want the masses to have. It may sound harsh but it is the way of the world and reality and it has always been that way.

 

[mavalpha]

Stock by backs are quite often good for investors when they boost stock prices thereby making your investement worth more money than before...thereby makign you money as is the point of investing.

Aditionally, How else would you suggest a company be allowed to return to being private than by paying its investors back the money they have invested in the company plus the premium that stock has earned?

Mis-quote. My first post was poorly formatted; I was quoting the poster above me. Check my second post.

 

[[Spectre]]

You have to understand that the average joe blow that invests in stock in any corporation is not going to have a major return on their investment. There are always exceptions to the rule but it is seldom and you are not going to change it.

Really? I have made 12% year on year on my money through my stock/mutual portfolio. Seems those people that can't make money are people who are investing short term (ie less than 10 years) or buying the new hotness all the time.

 

[Ockie]

Really? I have made 12% year on year on my money through my stock/mutual portfolio. Seems those people that can't make money are people who are investing short term (ie less than 10 years) or buying the new hotness all the time.

I wouldn't call 12% a major return on a high risk investment. And I do believe he said "average", not "all".

 

[[Spectre]]

I wouldn't call 12% a major return on a high risk investment. And I do believe he said "average", not "all".

That is over 97-06. If you exclude the data from the tech burst that dragged the market down iot looks better, however I wasn't heavily invested in tech or retail sectors. Risk is minimalized if you balance your portfolio correctly with mixture of mutual fund types, stocks, bonds, and liquidities. The point is 12% year on year though over a 10, 20, or 30 year period in which you continue to invest will eventually be a lot of money. People who become rich do not become rich overnight they do it by steadily working, investing, and living on less than they make. It isn't exceedignly hard it just requires effort to get ahead...effort most people don't want to put forth because it ISN'T instant gratification. Average can do it...average chooses not to.

 

[Ockie]

Average can do it...average chooses not to.

That I can agree with.

 

[drizzt81]

Equity must be getting expensive.

 

[xX_Jack_Carver_Xx]

Yeah, I get a dividend.... but only 1/2 the dividend I WOULD get if half of the profits weren't MIS-used by corporate management.

How is it in the stockholders interest (beyond VERY short term gain assuming you are about to SELL OFF your shares) to use PROFITS, hard won PROFITS to buy back stock on the market rather than A) PAY ME my dividend or B) Re-invest in the company's businesses to make the company stronger and more competitive?

Sure the stock price MAY undergo a rise due to the purchase but it will only be temporary and does shareholders no real good unless we SELL off the shares. Sure you might be able to BORROW more against higher priced shares, but that's not the normal use for stock investments.... to use as collatoral on debt.

All the buyback really accomplishes is to allow the MANAGEMENT (aka EMPLOYEE's) to LOOK BETTER using SHAREHOLDER MONEY to do so. Wow, sign ME up for a job like that. All I have to do is use YOUR cash to make ME look good, be awarded shares of my own for my great work, and otherwise get paid 1,000 TIMES the salary of the avg employee..... how nice.

 

[Ockie]

Yeah, I get a dividend.... but only 1/2 the dividend I WOULD get if half of the profits weren't MIS-used by corporate management.

How is it in the stockholders interest (beyond VERY short term gain assuming you are about to SELL OFF your shares) to use PROFITS, hard won PROFITS to buy back stock on the market rather than A) PAY ME my dividend or B) Re-invest in the company's businesses to make the company stronger and more competitive?

Sure the stock price MAY undergo a rise due to the purchase but it will only be temporary and does shareholders no real good unless we SELL off the shares. Sure you might be able to BORROW more against higher priced shares, but that's not the normal use for stock investments.... to use as collatoral on debt.

All the buyback really accomplishes is to allow the MANAGEMENT (aka EMPLOYEE's) to LOOK BETTER using SHAREHOLDER MONEY to do so. Wow, sign ME up for a job like that. All I have to do is use YOUR cash to make ME look good, be awarded shares of my own for my great work, and otherwise get paid 1,000 TIMES the salary of the avg employee..... how nice.

Yep. Welcome to the corporate world... fat cats gets fatter and the ones feeding them gets thinner.

 

[[Spectre]]

Yeah, I get a dividend.... but only 1/2 the dividend I WOULD get if half of the profits weren't MIS-used by corporate management.

How is it in the stockholders interest (beyond VERY short term gain assuming you are about to SELL OFF your shares) to use PROFITS, hard won PROFITS to buy back stock on the market rather than A) PAY ME my dividend or B) Re-invest in the company's businesses to make the company stronger and more competitive?

Buying back stock makes the company stronger by providing more control over the outstanding stock and preventing dilution of value by having large numbers of outstanding shares. Then overall growth will be spread over fewer shares making your longterm invest a larger portion (percentage wise) of the company and growth per share is increased amking you more money over both short and longterm.

 

[Iratus]

They've raised the dividend and the buyback will raise the stock price more than issuing greater dividends because it shows greater faith in the long term viability of their business plan.

Even that aside the stock has gone up nearly 5% on the week on the back of the results, buyback and (huge) dividend raise.

I've got stock, not loads admittedly, and am perfectly happy with the 5 year performance. Certainly compared to the panic I was starting to feel at the tail end of '04 when Global Services stopped making money.

 

[xX_Jack_Carver_Xx]

If you look at IBM stock price over the last 40 yrs, you see it does a GREAT job of going up and down all on it's own, not needing any help from the buyback myth. If you could ride the highs/lows accurately IBM was one of the most profitable AND safe investments in existence. And 30 yrs of that didn't need any fking buyback bullshit or insane management salaries. IBM was the last holdout to the "old school" manner of business, and now it too has gone to the dogs. IBM's R+D budget used to rival the US Govt in basic research, and countless breakthrough's in technology came out of those efforts. Kiss that shit good bye.

The shares bought back dont magically VANISH. Say the company has 1 BILLION shares outstanding, and the "company" uses company profits to buy back 100 MILLION shares. There isn't suddenly a pool of only 900 MILLION shares in existence. The 100M dont get burnt, tyhe CEO and board VOTE that stock. You the shareholders just LOST 10% of your voting strength, and YOU paid for the weakening of your own stockholder position.

Now the "company" goes and buys 800 MILLION more shares using YOUR money, and the remaining shareholders have a 100 MILLION share stake and 10% voting strength and management using YOUR MONEY now has 90% voting strength. Hmmm guess who's agenda gets acted on.

This is the ultimate game of BULLSHIT. Not enough to pay these fking stooges 1,000 TIMES the salary of the avg employee, we need to literally FUND the purchase of the company right out from under us with our own money. WTF.

Republicans dont think this shit up to make YOU money, they do it to STEAL YOUR MONEY. It's not a political opinion, it's COLD HARD FACT.

 

[xX_Jack_Carver_Xx]

If you look at IBM stock price over the last 40 yrs, you see it does a GREAT job of going up and down all on it's own, not needing any help from the buyback myth. If you could ride the highs/lows accurately IBM was one of the most profitable AND safe investments in existence. And 30 yrs of that didn't need any fking buyback bullshit or insane management salaries. IBM was the last holdout to the "old school" manner of business, and now it too has gone to the dogs. IBM's R+D budget used to rival the US Govt in basic research, and countless breakthrough's in technology came out of those efforts. Kiss that shit good bye.

The shares bought back dont magically VANISH. Say the company has 1 BILLION shares outstanding, and the "company" uses company profits to buy back 100 MILLION shares. There isn't suddenly a pool of only 900 MILLION shares in existence. The 100M dont get burnt, tyhe CEO and board VOTE that stock. You the shareholders just LOST 10% of your voting strength, and YOU paid for the weakening of your own stockholder position.

Now the "company" goes and buys 800 MILLION more shares using YOUR money, and the remaining shareholders have a 100 MILLION share stake and 10% voting strength and management using YOUR MONEY now has 90% voting strength. Hmmm guess who's agenda gets acted on.

This is the ultimate game of BULLSHIT. Not enough to pay these fking stooges 1,000 TIMES the salary of the avg employee, we need to literally FUND the purchase of the company right out from under us with our own money. WTF.

Republicans dont think this shit up to make YOU money, they do it to STEAL YOUR MONEY. It's not a political opinion, it's COLD HARD FACT.

 

[Iratus]

Well with my 500 and something shares against 1.5bn outstanding I'll be sure to register my abject disgust at this abhorant practice, probably by using the dividend to buy a couple of extra shares because they'll have to listen to me then.

Meanwhile the major shareholders that are the ones that make the money will no doubt be beating a path to their door to throw the board out on their ear.

 

[srangara]

The most egregious error of Jack Carver's is that the company somehow keeps the shares that it buys back for voting purposes. This is patently untrue. Bought shares go into the Treasury, where they become NON-VOTING shares. In fact, some companies retire bought shares, in which case they do 'vanish'. Treasury shares can be used for things like stock options or employee purchase plans. (What, do you think those shares magically APPEAR?)

In any case, outstanding (market) shares become more valuable and have more voting power. Compare this to what happens when stock options are issued or the company just issues additional shares. Stock splits, on the other hand, have no net effect (other than psychologically).

The board of directors own no shares. This is what 'independent' means. As I understand it, they can only vote based on shareholder proxies. It is assumed that if a shareholder does not return their proxy form (or show up to to vote in person), then they want the board to vote on their behalf. Typically, the board will use that investor's voting shares to vote in their favour. If you don't want this to happen, then VOTE. Duh.

You may be interested to know that only 0.02% of IBM shares are owned by insiders. 58.5% are owned by institutional shareholders. If you don't like the direction of your company, go ahead and blame the banks or join a shareholder activist group instead.

Yes, stock buyback plans only help the shareholders. Guess who demands such plans?

I am frankly glad that IBM has chosen to keep at least some of its profits out of your hands. I think their track record shows they know better what to do with it.