IBM’s Massive Share Repurchase

Bloomberg Businessweek discusses the big share buyback at IBM (IBM):

Some would like to see IBM use the buyback money on dividends. “The profit is the shareholders’ money,” says Eddy Elfenbein, who runs the blog CrossingWallStreet.com. IBM’s 1.81 percent dividend yield trails the S&P 500 average of 1.92 percent. Microsoft yields 2.34 percent; Intel (INTC), 3.10 percent. “With yields at historic lows and CDs paying nothing,” says Joshua Scheinker, a senior vice-president with Janney Montgomery Scott in Baltimore, “everyone wants to see an income stream.” Scheinker notes that dividends are taxable—and that the levy may rise if Congress does not extend the Bush tax cuts.

Personally, I agree with that guy they quoted.

Posted by Eddy Elfenbein on November 4th, 2010 at 8:50 pm

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