Last update: May 9, 2026 at 09:32
Dividend Safety Rating
IBM's dividend appears safe and well-supported. Strengths include a 59.5% earnings payout ratio & 51.2% fcf payout ratio. Areas of concern: 0.8x current ratio & 211.2 debt-to-equity. As a Dividend Aristocrat with 25+ consecutive years of increases, IBM has a proven commitment to shareholders.
Based on 15 of 15 metrics
Strengths
- Return on Equity: 35.8%Strong return on equity reflects efficient profit generation.
- Gross Margin: 56.2%High gross margin signals strong pricing power.
- Dividend Streak: Aristocrat (25+ yrs)Long, uninterrupted dividend track record.
Risks
- Current Ratio: 0.8xLimited short-term liquidity to meet obligations.
- Debt-to-Equity: 211.2Debt-to-equity is elevated for the sector.
- Profit Margin Stability: VolatileProfit margins have been volatile.
Payout & Coverage
SafeBalance Sheet
WarningProfitability
SafeDividend Track Record
SafeAbout International Business Machines Corp
International Business Machines Corporation (IBM), commonly known as 'Big Blue,' is an American multinational technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company, IBM pioneered punch-card tabulating systems, mainframe computers like the System/360, and the IBM Personal Computer in 1981, shaping the evolution of business computing worldwide. The company has driven innovations including FORTRAN, SQL, DRAM, the hard disk drive, floppy disk, ATM, and UPC barcode, while leading in supercomputing—such as Deep Blue's chess victory—and holding records for U.S. patents for decades. Today, IBM focuses on hybrid cloud computing, artificial intelligence via Watson, quantum computing with systems like IBM Q System One, cybersecurity, data analytics, and IoT, supported by the world's largest industrial research organization across 19 facilities in 12 countries. Employing around 345,000 people globally as of mid-2023, IBM operates in over 175 countries, providing consulting services to 160,000 clients and emphasizing ethical business practices and technological advancement. Its strategic shifts, including divesting its PC business to Lenovo in 2005 and spinning off Kyndryl in 2020, underscore its adaptation to modern enterprise needs in AI, automation, and secure infrastructure.
Dividend Overview
Dividend Yield
2.93%
Annual Dividend
$6.72
Frequency
Quarterly
Payout Ratio
59.47%
FCF Payout Ratio
51.25%
Stock Price
$229.76
52-Week Range
$220.72 – $324.90
Dividend History (2016–2025)
IBM annual dividend per share and yield history
Earnings & Profitability
IBM earnings per share and net profit margin
Key Dates
Last Ex-Dividend Date
May 8, 2026
Next Payment Date
June 10, 2026
Dividend Growth
3-Year Dividend CAGR
0.60%
5-Year Dividend CAGR
1.52%
10-Year Dividend CAGR
3.45%
3-Year Total Growth
1.82%
5-Year Total Growth
7.81%
10-Year Total Growth
40.37%
Dividend Aristocrat (25+ yrs)
This company has increased its dividend for 25+ consecutive years.
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Frequently Asked Questions
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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.
Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.
Market data provided by Twelve Data.