Introduction to IBM and Its Dividend Strategy
IBM (International Business Machines Corporation) is a global technology and consulting company founded in 1911. Known for its innovation in computing, cloud solutions, and AI (especially with the development of Watson and acquisition of Red Hat), IBM also has a strong track record of returning value to shareholders through dividends.
One of IBM’s hallmark investor strategies has been its consistent dividend payouts making it part of the elite group of companies known as Dividend Aristocrats (those that have increased dividends for 25+ consecutive years).
IBM Dividend in 2024: Key Figures
As of 2024, IBM continued its tradition of regular dividend payments.
Quarterly Dividend Payout (2024):
- Amount: $1.66 per share (per quarter)
- Annual Dividend: $6.64 per share (based on $1.66 x 4)
- Dividend Yield: ~4.5% to 5.3% (varies with IBM’s stock price)
Example: If IBM stock is $125, a $6.64 annual dividend gives you a 5.3% yield.
Dividend Payout Dates in 2024:
IBM generally announces its dividends on a quarterly basis, and the payment schedule usually looks like this:
| Quarter | Declaration Date | Ex-Dividend Date | Record Date | Payment Date |
| Q1 2024 | Jan 30, 2024 | Feb 8, 2024 | Feb 9, 2024 | March 9, 2024 |
| Q2 2024 | Apr 30, 2024 | May 8, 2024 | May 9, 2024 | June 10, 2024 |
| Q3 2024 | Expected July | TBD | TBD | TBD |
| Q4 2024 | Expected Oct | TBD | TBD | TBD |
( Confirmed for Q1 and Q2. Future dates are estimates based on past patterns.)
Dividend Growth History
IBM has increased its dividend annually for 29 consecutive years as of 2024. Here’s a brief view of its growth trajectory:
| Year | Dividend Per Share | Annual Increase |
| 2020 | $6.48 | +$0.08 |
| 2021 | $6.56 | +$0.08 |
| 2022 | $6.60 | +$0.04 |
| 2023 | $6.64 | +$0.04 |
| 2024 | Expected $6.64 | Flat or +$0.04 |
The increases have slowed in recent years as IBM has focused more on acquisitions and debt reduction.
Dividend Yield Comparison (2024)
IBM’s dividend yield remains attractive to income investors, especially when compared to other major tech companies:
| Company | Dividend Yield (2024) |
| IBM | ~5.0% |
| Apple | ~0.6% |
| Microsoft | ~0.8% |
| Oracle | ~1.4% |
| Cisco | ~2.9% |
IBM’s yield is among the highest in the tech sector.
Dividend Payout Ratio
The payout ratio (percentage of earnings paid out as dividends) is crucial in evaluating dividend sustainability.
- IBM’s 2024 payout ratio: ~70–80%
- This is on the higher side, meaning a significant portion of profits is used for dividends.
- However, IBM’s free cash flow remains strong enough to support ongoing payments.
Who Benefits from IBM Dividends?
- Income Investors: Retirees and conservative investors looking for steady cash flow.
- Dividend Reinvestors: Those using DRIP (Dividend Reinvestment Plans) to accumulate shares.
- Portfolio Diversification: Balancing growth stocks with dividend-paying blue chips.
Stock Performance and Dividend Correlation
- IBM’s stock price has been relatively stable with mild upward trends in recent years.
- Dividend payments have helped soften the blow during bear markets or sluggish growth periods.
- Long-term investors often view IBM as a “value + income” stock, not a growth play like NVIDIA or Tesla.
Outlook for 2025 and Beyond
- Analysts expect modest dividend growth, potentially to $1.68 or $1.70/quarter in 2025.
- IBM’s emphasis on AI and hybrid cloud (Red Hat integration) may boost earnings and free cash flow.
- The company is likely to continue its dividend aristocrat tradition, although major hikes are not expected unless revenue growth accelerates.
Final Thoughts
- IBM’s 2024 dividend remains strong, reliable, and shareholder-friendly.
- With a 5%+ dividend yield, it is attractive for income-focused investors.
- It represents the legacy stability of tech—less hype, more consistency.
- The growth may be modest, but the steady income stream and financial discipline make it a good fit for certain portfolios.
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