US STOCKS-Wall St advances as IBM and data offset bank fears

* IBM boosts dividend, to buyback stock

* Citigroup talking to U.S. govt on capital levels

* Economic data give stocks support

* New Zealand, Israel confirm cases of swine flu

* Dow up 0.6 pct, S&P up 0.5 pct, Nasdaq up 0.3 pct

* For up-to-the-minute market news click [STXNEWS/US] (Updates to late afternoon, changes byline)

By Rodrigo Campos

NEW YORK, April 28 (Reuters) - U.S. stocks rose on Tuesday as IBM's dividend boost and reassuring data that could point to a bottom in the slow economic cycle offset worries that major banks may need to raise more money.

Worries lingered over the economic impact from the threat of a flu pandemic, as New Zealand and Israel were the latest countries to confirm cases of a new strain of flu linked to dozens of deaths in Mexico. (For details, see [ID:nN27476506])