IBM CEO won't cut 5% dividend, not looking to split company
IBM CEO: We’ll do acquisitions, but at the right time
IBM CEO Arvind Krishna says it has a secure dividend and financial flexibility, which leaves room for additional acquisitions in the future when they make strategic sense.
International Business Machines Corporation (IBM) CEO Arvind Krishna said on Tuesday that he is not looking to split up the technology company and won't cut its 5% dividend.
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The company withdrew its 2020 annual forecast due to coronavirus concerns on April 20. IBM executives told Reuters that the tech giant's customers were well-positioned for the pandemic, and IBM would continue to pay dividends.
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"I believe that we actually have enough financial stability, including a secure dividend," Krishna said on "Mornings with Maria." "The dividend is occupying a little bit more than half our free cash flow. It's not like it's occupying all of it, and that leaves enough flexibility for us to do it."
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Krishna, who took over as CEO last month, added that IBM is "always open for acquisitions when they make strategic sense and when the price is right."