Lehman Brothers Raises Dividend, Sets Buyback

Lehman Brothers said it is raising its dividend by 25%, and said it had authorization to buy back nearly 20% of its shares.

After a year of record profits, Wall Street firms are returning millions of dollars to their shareholders through dividends and buybacks.

Lehman raised its dividend to 60 cents a share from 48 cents a share.

The investment bank also said it had authorized the buyback of up to 100 million shares, including new shares issued under employee stock awards. As of Nov. 30, the company had about 533 million shares outstanding. The repurchase program supersedes Lehman's existing buyback program.