The World's largest computer services provider, International Business Machines Corp (IBM) has declared a dividend of 18 per cent for this year.

This is double the amount that it declared during last year. And that is some very good news for the investors.

And because of this, the quarterly payout for the company will rise by 10 cents to 65 cents per share. The company is also adding a repurchase plan of $8 billion. It makes the total corpus become $10 billion.

Surely the confidence of people related to IBM should get booted as it has managed a profit after 2005. Although, the figure is small, the good part is that it has managed to get out of the red.

The quarterly results have also shown that IBM has seen a decline in the signing of various service contracts. This suggest that the spending on big projects by corporate world has not begun as of yet.

After this, the share price of IBM went down. But the news on dividend, analysts believe is a positive sign and that the shares will get better from here.