International Business Machines Corporation
IBM30 yrs growthTechnology · Stock · quarterly payer
Forward Yield
2.92%
Annual Dividend
$6.76
Payout Ratio
60%
5-Yr Growth
1.5%
Ex-Date
Aug 10, 2026
Frequency
Quarterly
Summary
As of September 2026, International Business Machines Corporation (IBM) yields 2.92% ($6.76 per share annually), with a blended fair-value estimate of $233.78 — -1% downside, so it screens as fairly valued. Dividend safety grade: A (91/100). 30 years of dividend growth.
Is IBM a good dividend stock?
YesInternational Business Machines Corporation (IBM) pays a quarterly dividend yielding 2.92% ($6.76/yr), with 30 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- Dividend Aristocrat — 30 consecutive years of growth
- Comfortable payout ratio (60%)
- 77% total price return over 5 years
- Top-tier dividend safety score
Risks
- Cut its dividend in 1994
Key Data
- Dividend Yield
- 2.92%
- Payout Ratio
- 60%
- Annual Dividend
- $6.76
- 5-Yr Avg Growth
- 1.5%
- Ex-Dividend Date
- Aug 10, 2026
- Years of Growth
- 30
- Frequency
- quarterly
- Beta
- 0.70
- Market Cap
- $221.1B
- P/E Ratio
- 20.6
- 5-Yr Total Return
- 77%
- 52-Week Range
- $199.19 – $332.46
- Dividend Safety
- A · 91/100
- Ever Cut?
- Yes (1994)
Frequently Asked Questions
IBM Price — Last 12 Months
Daily close
Price Return
1 Year
-17%
3 Years
+68%
5 Years
+77%
52-Week Range
$199.19 – $332.46
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is IBM worth?
Fairly valuedhigh confidenceOur blended fair-value estimate for International Business Machines Corporation is $233.78 per share, versus a market price of $235.59. That implies the stock is roughly fairly priced.
Fair Value
$233.78
Current Price
$235.59
Gap
-1%
Margin of Safety
-1%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 6.9% annual free-cash-flow growth. We model 8.7% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.8% discount rate (CAPM), 8.7% stage-1 growth, 2.5% terminal growth, $11.12 EPS, $6.76 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
IBM Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 10, 2026 | — | $1.6900 | regular |
| May 8, 2026 | — | $1.6900 | regular |
| Feb 10, 2026 | — | $1.6800 | regular |
| Nov 10, 2025 | — | $1.6800 | regular |
| Aug 8, 2025 | — | $1.6800 | regular |
| May 9, 2025 | — | $1.6800 | regular |
| Feb 10, 2025 | — | $1.6700 | regular |
| Nov 12, 2024 | — | $1.6700 | regular |
| Aug 9, 2024 | — | $1.6700 | regular |
| May 9, 2024 | — | $1.6700 | regular |
| Feb 8, 2024 | — | $1.6600 | regular |
| Nov 9, 2023 | — | $1.6600 | regular |
| Aug 9, 2023 | — | $1.6600 | regular |
| May 9, 2023 | — | $1.6600 | regular |
Income Calculator
At $6.76 / yr per share
