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International Business Machines Corp (IBM) logo

International Business Machines Corp

Dividend AristocratS&P 500
IBM|Technology|Information Technology Services|$229.76|P/E 20.3|MCap 215.9B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

67/ 100Safe

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

Safe
Earnings Payout Ratio
59.5%Safe
FCF Payout Ratio
51.2%Safe
CFO Payout Ratio
47.3%Safe
Interest Coverage
6.3xSafe

Balance Sheet

Warning
Net Debt / Total Assets
33.6%Caution
Current Ratio
0.8xWarning
Debt-to-Equity
211.2Warning

Profitability

Safe
Return on Equity
35.8%Very Safe
Operating Margin
13.8%Caution
Gross Margin
56.2%Very Safe
Profit Margin Stability
VolatileWarning

Dividend Track Record

Safe
Dividend Streak
Aristocrat (25+ yrs)Very Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
1.5%Warning
Earnings Stability
GrowingVery Safe

About 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.

Income Calculator

IBM Dividend Calculator

Total Investment

$22,976.00

Annual Income

$672.00

Quarterly Income

$168.00

Monthly Income

$56.00

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Frequently Asked Questions

What is IBM's current dividend yield?
International Business Machines Corp (IBM) currently has a dividend yield of 2.93%, based on a stock price of $229.76 and an annual dividend of $6.72.
When is IBM's next dividend payment date?
IBM's next ex-dividend date is 2026-05-08 and the next payment date is 2026-06-10. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does IBM pay in dividends per year?
International Business Machines Corp paid $6.71 per share in annual dividends in 2025. The dividends are paid quarterly.
Has IBM been increasing its dividend?
Yes, International Business Machines Corp is a Dividend Aristocrat (25+ yrs). Its dividend has grown at a 5-year CAGR of 1.52%, a 3-year CAGR of 0.60% and a 10-year CAGR of 3.45%.
Is IBM's dividend safe?
International Business Machines Corp has a payout ratio of 59.47%. Its free cash flow payout ratio is 51.25%. A payout ratio below 60% is generally considered sustainable.
How is IBM's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates International Business Machines Corp's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for technology companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

Track IBM Dividends with OnlyDividends

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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.