IBM dividend history, yield, and payout ratio: What investors need to know
International Business Machines — more commonly called IBM or simply “Big Blue” — has been a fixture in the computing world for far longer than most of its tech peers. Founded more than a century ago, the company now operates across a wide range of cutting-edge fields, from cloud-based enterprise software to artificial intelligence and quantum computing.
Unlike some younger tech giants that have only recently begun returning cash to shareholders, IBM is a mature blue-chip stock, a member of the Dow Jones Industrial Average — America’s oldest and most exclusive stock index — and a consistent dividend payer with a long track record.
Big Blue has rewarded its long-term investors by sharing profits through quarterly dividends, steadily raising those payments over time. In fact, IBM has paid dividends 445 times, with the first payout dating back to 1913, when it was still known as the Computing-Tabulating-Recording Company and had yet to go public.
Here’s a detailed breakdown of IBM’s dividend, including its current yield, payout ratio, historical growth, and what income-focused investors should watch for going forward.
A steady quarterly payout
IBM currently pays a quarterly dividend of $1.69 per share, with payments typically arriving in shareholder accounts around the 10th of March, June, September, and December.
That works out to $6.76 per share annually. So an investor holding 100 shares would collect about $676 in dividends over the next 12 months.
A stock’s dividend yield — the ratio of its annual per-share dividend to its share price — fluctuates with market movements. When the stock price drops, the yield rises, and vice versa.
At the time of this update, IBM’s trailing 12-month yield was roughly 3.1%, based on a share price near $216.
Related: Is IBM a good investment in 2026? Its buy-and-hold prospects explained
Dividend growth: Slow but steady
IBM most recently raised its quarterly dividend by a penny — from $1.68 to $1.69 — beginning with its June 10, 2026, distribution (payable to shareholders of record as of May 8, 2026).
That one-cent annual increase has been the pattern since 2020. Before that, the company was more aggressive: In 2015, for example, it boosted the quarterly payout by 20 cents, from $1.10 to $1.30.
Even with the smaller recent increases, analysts expect IBM to keep raising its dividend each year. Doing so signals financial strength to the market and helps the company maintain its elite status as a dividend aristocrat — a category of stocks that income investors prize.
More on dividend stocks in the Dow:
Dividend aristocrats are stocks that have increased their dividends annually for 25 years or longer. IBM has extended its streak to 31 consecutive years, firmly securing its spot in that group.
That said, IBM is not among the so-called “dogs of the Dow” — the 10 Dow components with the highest dividend yields. As of late July 2026, IBM ranked 13th out of the 30 Dow stocks by yield.
Payout ratio: How much profit goes to shareholders
The payout ratio measures the portion of a company’s net income returned to shareholders as dividends. For IBM’s 2025 fiscal year, the payout ratio was about 79.8%, meaning the company returned nearly 80% of its earnings to investors.
For the second quarter of 2026, the ratio was lower, at roughly 58%, based on a quarterly dividend of $1.69 and adjusted earnings per share of $2.93.
Related: IBM’s stock split history: Why Big Blue stopped splitting shares
Reliability and the big picture
Despite recent stock price volatility, most analysts view IBM’s dividend as reliable. The payout ratio is high enough to show management prioritizes returning capital to shareholders, but low enough to leave ample cash for operations. In fact, IBM’s free cash flow over the past year has been roughly twice the amount it paid in dividends.
The company’s “dividend aristocrat” label and 31-year streak further underscore its commitment to long-term shareholders — many of whom own the stock precisely for that growing income stream.
When IBM reported somewhat disappointing Q2 2026 earnings, CFO James Kavanaugh reassured investors that the dividend remains a priority. “In a quarter like this,” he said, “it is critical that our financial and operational discipline remains strong and that we continue to invest for growth while returning value to shareholders through our dividend.”
CEO Arvind Krishna owned 371,894 shares as of February 2026. With IBM paying $6.71 per share in dividends in 2025, Krishna’s personal take would have been nearly $2.5 million.
This story was originally published by TheStreet on Jul 27, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.