Another tech giant that is a big proponent of returning money to shareholders is IBM (IBM). While not quite as rich as the aforementioned Apple, it still is a well-heeled tech player with a lot of cash to share with investors.
IBM has paid dividends in some form since 1916, when it was still known as the Computing Tabulating Recording Company. And while the company has come a long way, its commitment to payouts hasn’t changed; IBM currently pays 95 per share per quarter for about $4.1 billion in total dividend payouts annually.
IBM stock currently yields 2.1%.
Beyond dividends, IBM stock buybacks are another great way that shareholders are seeing cash returned to them. IBM’s board just approved a $15 billion buyback plan, bringing its total repurchase plan to $20.6 billion.
Furthermore, the blue-chip stock known as Big Blue has returned a whopping $159 billion to shareholders since 2000.
With a low dividend payout ratio that is just 21% of FY2014 earnings, IBM has plenty of more room to expand its dividends and buybacks going forward, too.