My Big Blue just announced a 50% increase in dividend payouts, along with a $4 billion expansion of its stock buyback program. (That's in addition to the $2.5 billion IBM had already earmarked to repurchase shares.) Believe it or not, the hike is the largest in the history of this industry, which has paid dividends to shareholders since what, 1916? So does that mean IBM's business is improving? Perhaps, but then again, I have to be objective and impartial to be fair. IBM's cash-flow from operations has been relatively stagnant since 2001. And while per-share earnings are expected to rise by approximately 20% this year, much of that increase I would say could be due to the share buybacks. In English, there just can't be a guarantee that cash is flowing any faster than it always has. But but but, it seems that IBM has finally found a business model that offers relatively predictable growth. After all, with a payout ratio of only 16%, Big Blue has had plenty of opportunities to boost its dividend more than it has over the years. And the buybacks make sense: IBM is trading for just 13 times forward earnings. The stock hasn't been that cheap since 1996. The conclusion is that there isn't any clear conclusion. There can be any number of reasons why IBM has chosen to return money to shareholders, like me. Regardless, this move has all the markings of smart capital allocation that's likely to be rewarding for patient investors. Off the record, I still think they can hit their $100 mark by the end of this year. I guess that's what you wanted to hear after all this gibberish.