Dow component International Business Machines (NYSE: IBM), the world's biggest provider of computer services, raised its quarterly dividend by 10 cents, or 18%, to 65 cents a share.

That is more than double last year's dividend hike. The new dividend is payable on June 10th to shareholders of record on May 10th.

While expected by shareholders, the dividend increase is still good news following IBM's disappointing first-quarter earnings release last week.

The company said its services business, IBM's most important business line, remains sluggish and that led to a sell-off in the shares.

In addition to the new dividend, IBM did shareholders another good turn by adding $8 billion to a share buyback plan that had $2 billion remaining on it.

IBM is the third Dow constituent in a week to raise its payout. Johnson & Johnson (NYSE: JNJ) and Procter & Gamble (NYSE: PG) announced dividend increases last week.

This is the 15th consecutive year in which IBM has boosted its dividend.