NEW YORK (CNN/Money) - International Business Machines Corp. Tuesday raised its quarterly dividend 7 percent, or 1 cent a share, and said it will repurchase up to $3.5 billion of its stock.

Big Blue has raised its quarterly dividend seven times since 1996 for a total increase of 140 percent.

The Armonk, N.Y.-based computer maker declared the cash dividend at the start of its annual meeting in Louisville, Ky. The new dividend of 15 cents per common share is payable June 10 to stockholders of record May 10.

Shares of IBM (IBM: up $1.02 to $84.91, Research, Estimates), one of the Dow 30 components, have fallen about 30 percent so far this year, compared with a nearly 3 percent decline in the Dow Jones industrial average.  

-- from staff and wire reports