IBM is increasing its dividend payout 25 percent. The move reflects the company’s confidence that it can thrive even with an uncertain economy.

At IBM’s annual shareholder meeting Tuesday in Charlotte, the board of directors upped the quarterly dividend to 50 cents per share. For the past four quarters the payout had been 40 cents per share.

Two weeks ago IBM reported a 26 percent jump in profit and raised its earnings forecast for the year. The company also plans to spend $12 billion buying back its shares in 2008.