International Business Machines — more commonly known as IBM or “Big Blue” — is far older than most of its peers in the computing technology industry. But while it was founded more than a century ago, its current operations span the gamut of cutting-edge technologies, from cloud-based enterprise software to AI and quantum computing.
Standing out from some of its younger peers in the tech space, IBM is a mature, blue-chip stock, a component of the Dow Jones Industrial Average (America’s oldest and most exclusive stock market index), and a consistent dividend payer.
Over the years, Big Blue has rewarded its long-term shareholders by sharing its profits through quarterly dividend payments — and raising these payments consistently over time. In fact, IBM has paid dividends 445 times, beginning way back in 1913, when it was known as the Computing-Tabulating-Recording Company and had yet to go public.
Here’s a closer look at IBM’s dividend, including its yield, payout ratio, history, and future prospects.
IBM dividend quick facts
- Dividend: $1.69
- Paid: Quarterly
- Annual dividends per share: $6.76
- Trailing 12-month yield: 3.13%
- Dividend payout ratio: 58.42%
- Most recent dividend: June 10, 2026
- First dividend: April 10, 1913
- Total dividend disbursements: 445
- Years of consecutive annual dividend increases: 31
When and how often does IBM pay dividends?
IBM currently pays a quarterly dividend of $1.69 per share. Typically, these payments land in the brokerage accounts of IBM shareholders on or around the 10th of March, June, September, and December.
Annually, IBM’s dividend comes out to $6.76 per share per year at the current level. This means that an investor with 100 shares of the stock could expect to receive $676 in dividends over the next year.
What is IBM’s dividend yield?
A company’s dividend yield is the ratio of its annual per-share dividend to its share price, so it can vary considerably depending on how that company’s stock price moves in the open market. When a stock’s price goes down, its dividend yield goes up, and vice versa.
As of this article’s last update, IBM’s trailing 12-month yield (the sum of its last four dividend payments divided by its current stock price) was around 3.1% based on a stock price of around $216.
Related: Is IBM a good investment in 2026? Its buy-and-hold prospects explained
When did IBM raise its dividend? Will it raise it again?
IBM most recently raised its quarterly dividend by 1 cent — from $1.68 to $1.69 per share — beginning with its June 10, 2026, dividend distribution (payable to shareholders of record as of May 8, 2026).
In fact, Big Blue has raised its quarterly dividend by one cent per share each year since 2020. Prior to this, the company was more aggressive with its dividend increases. For instance, in 2015, it bumped its quarterly payout by 20 cents from $1.10 per share to $1.30.
Despite the company’s smaller annual dividend increases over the past several years, continued annual dividend increases are considered likely, as they signal strength to investors and help the company maintain its elite status as a dividend aristocrat, a category of stocks that is popular among income investors.
More on dividend stocks in the Dow:
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What makes IBM a dividend aristocrat?
Dividend aristocrats are stocks that have raised their dividends each year for 25 years or more. Since IBM boasts 31 years of consecutive dividend increases, it’s a member of this elite group.
IBM is not, however, one of the so-called dogs of the Dow. This term refers to the 10 stocks in the Dow Jones Industrial Average with the highest dividend yields. As of late July 2026, IBM ranks 13th out of the 30 stocks in the Dow by dividend yield.
What is IBM’s dividend payout ratio?
A stock’s dividend payout ratio refers to the portion of a company’s profits that are paid out to shareholders as dividends. For 2025, IBM’s payout ratio was around 79.8%, meaning that the company returned almost 80% of its net income to shareholders.
IBM’s payout ratio for Q2 of 2026 is lower, at around 58%, based on a quarterly dividend of $1.69 and an adjusted EPS of $2.93.
Related: IBM’s stock split history: Why Big Blue stopped splitting shares
Is IBM’s dividend safe?
Despite recent volatility in its stock price, most investors and analysts consider IBM’s dividend reliable. The blue-chip company’s payout ratio is high enough to indicate that company management values returning profits to shareholders, but not so high that the company doesn’t have enough cash left over for its operations. In fact, the company’s free cash flow over the last year or so is about twice what it paid in dividends over the same period.
IBM’s dividend aristocrat status and 31-year history of annual dividend increases further demonstrate the company’s commitment to its long-term shareholders, many of whom value the stock specifically for its growing dividend.
When the company reported somewhat disappointing Q2 earnings, CFO James Kavanaugh assured shareholders that IBM’s dividend remains a priority, saying, “In a quarter like this, 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.”
How much does IBM CEO Arvind Krishna make in dividends?
IBM CEO Arvind Krishna owned 371,894 of the company’s shares as of February 2026. With the company paying $6.71 per share in dividends in 2025, Krishna’s payout would have totaled almost $2.5 million.
