Lehman raises dividend, sets 100 mln share buyback

NEW YORK, Jan 29 (Reuters) - Lehman Brothers Holdings Inc LEH.N, the Wall Street investment bank, on Tuesday raised its common stock dividend 13 percent and said its board of directors authorized the buyback of up to 100 million shares.

The quarterly dividend will rise to 17 cents per share from 15 cents. Lehman said the higher dividend is payable on Feb 22 to shareholders of record as of Feb 15.

New York-based Lehman said the buyback program covers nearly 19 percent of its 530.6 million shares outstanding at year end, and supersedes a prior authorization.

The shares covered by the new program are worth about $6.25 billion, based on Lehman's Tuesday closing price. Lehman shares rose $1.90, or 3.1 percent, on Tuesday to close at $62.53 on the New York Stock Exchange. (Reporting by Jonathan Stempel; Editing by Gunna Dickson)