Page title
Section title
- Dividend Yield
- 3.08%
- Payout Ratio
- 73.40%
- Dividend Amount Per Share
- $6.65
- Last Ex-Dividend Date
- Aug 09, 2024
IBM Dividend Safety
IBM paid out 73.40% of its $8B earnings as dividends over the last 12 months.
Unsafe
Very Unsafe
Unsafe
Somewhat Safe
Safe
Very Safe
Dividend Payout Ratio
IBM's Dividend Payout Ratio of 73.4% is considered high for the Technology sector, potentially restricting the funds available for reinvestment and threatening future growth.
Interest Rate Coverage
IBM's Interest Coverage Ratio of 5.396 indicates strong financial health with easy coverage of interest expenses.
Income Quality
IBM shows excellent income quality with a ratio of 1.854. This indicates high-quality earnings and low risk of dividend cuts.
IBM Dividend Growth
International Business Machines Corporation(IBM) offers a dividend yield of 3.08% and pays $6.65 in dividends per share. Explore the historical dividend growth of IBM.
Dividend Stability
IBM has maintained stable dividend payments over the past 10 years with no cuts over 5%.
Dividend Growth
IBM's dividend payments have shown very poor growth, growing by 1.537% over the last 5 years.
Earnings Growth
IBM's earnings have shown very poor growth, shrinking by -4.474% over the last 5 years. Poor earnings growth or decline indicates potential struggles to maintain dividend levels, which may lead to cuts and affect overall returns.
IBM Dividend Yield Attractiveness
International Business Machines Corporation(IBM) provides a dividend yield of 3.08%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.
Yield %
1.64%
2.00%
3.08%
3.84%
Dividend Yield
IBM's dividend yield of 3.08% is considered good compared to the sector average of 2.001%, providing a strong safety margin for investors.
IBM Cash Flow
Over the past 12 months, IBM generated $62B in revenue, produced $12B in free cash flow, and distributed $6B in dividends.
Free Cash Flow Growth
IBM's free cash flow has decreased by -0.454% annually over the last 5 years, indicating a weak ability to generate cash and support dividend payments.
IBM Free Cash Flow and Dividends Paid
This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by International Business Machines Corporation. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.