Why does IBM dividend history matter to investors?

Investing in dividend-paying stocks is a powerful strategy for building long-term wealth. And, dividend history often provides invaluable insights into the financial health and future prospects of a company. For long-term investors, dividends can be a reliable source of income and a key indicator of how a company allocates its profits.

Since the early 2000s, IBM’s dividend history shows a clear pattern of consistency, if not aggressive growth. The company has steadily increased its dividend payouts, even during economic downturns and periods of internal restructuring. But how much do you really know about this tech giant’s dividend history?

In this blog, we dug deep into the numbers to uncover 12 surprising facts that might change how you view IBM’s stock.

1. IBM has Paid Dividends for Over 100 Years

IBM dividend history shows that the company has been paying dividends consistently since 1916. What’s even more impressive is that IBM hasn’t missed a dividend payment in over 30 years, even during economic downturns such as the dot-com crash and the 2008 financial crisis.

IBM Dividend Overview

• Ex-Dividend Date: 08/09/2024
• Dividend Yield: 2.86%
• Annual Dividend: $6.68
• P/E Ratio: 28.69

IBM Dividend History

Ex-Dividend Date	Type	Cash Amount	Declaration Date	Record Date	Payment Date
08/09/2024	Cash	$1.67	07/29/2024	08/09/2024	09/10/2024
05/09/2024	Cash	$1.67	04/30/2024	05/10/2024	06/10/2024
02/08/2024	Cash	$1.66	01/30/2024	02/09/2024	03/09/2024
11/09/2023	Cash	$1.66	10/30/2023	11/10/2023	12/09/2023
08/09/2023	Cash	$1.66	07/24/2023	08/10/2023	09/09/2023
05/09/2023	Cash	$1.66	04/25/2023	05/10/2023	06/10/2023
02/09/2023	Cash	$1.65	01/31/2023	02/10/2023	03/10/2023
11/09/2022	Cash	$1.65	10/25/2022	11/10/2022	12/10/2022
08/09/2022	Cash	$1.65	07/25/2022	08/10/2022	09/10/2022
05/09/2022	Cash	$1.65	04/26/2022	05/10/2022	06/10/2022
02/10/2022	Cash	$1.64	02/01/2022	02/11/2022	03/10/2022
11/09/2021	Cash	$1.64	10/26/2021	11/10/2021	12/10/2021
08/09/2021	Cash	$1.64	07/27/2021	08/10/2021	09/10/2021
05/07/2021	Cash	$1.64	04/27/2021	05/10/2021	06/10/2021
02/09/2021	Cash	$1.63	01/26/2021	02/10/2021	03/10/2021
11/09/2020	Cash	$1.63	10/27/2020	11/10/2020	12/10/2020
08/07/2020	Cash	$1.63	07/28/2020	08/10/2020	09/10/2020
05/07/2020	Cash	$1.63	04/28/2020	05/08/2020	06/10/2020
02/07/2020	Cash	$1.62	01/28/2020	02/10/2020	03/10/2020
11/07/2019	Cash	$1.62	10/29/2019	11/08/2019	12/10/2019
08/08/2019	Cash	$1.62	07/30/2019	08/09/2019	09/10/2019
05/09/2019	Cash	$1.62	05/01/2019	05/10/2019	06/10/2019
02/07/2019	Cash	$1.57	01/30/2019	02/08/2019	03/09/2019
11/08/2018	Cash	$1.57	10/31/2018	11/09/2018	12/10/2018
08/09/2018	Cash	$1.57	08/01/2018	08/10/2018	09/10/2018
05/09/2018	Cash	$1.57	04/24/2018	05/10/2018	06/09/2018
02/08/2018	Cash	$1.50	01/30/2018	02/09/2018	03/10/2018
11/09/2017	Cash	$1.50	10/31/2017	11/10/2017	12/09/2017
08/08/2017	Cash	$1.50	07/25/2017	08/10/2017	09/09/2017
05/08/2017	Cash	$1.50	04/25/2017	05/10/2017	06/10/2017
02/08/2017	Cash	$1.40	01/31/2017	02/10/2017	03/10/2017
11/08/2016	Cash	$1.40	10/25/2016	11/10/2016	12/10/2016
08/08/2016	Cash	$1.40	07/26/2016	08/10/2016	09/10/2016
05/06/2016	Cash	$1.40	04/26/2016	05/10/2016	06/10/2016
02/08/2016	Cash	$1.30	01/26/2016	02/10/2016	03/10/2016
11/06/2015	Cash	$1.30	10/27/2015	11/10/2015	12/10/2015
08/08/2015	Cash	$1.30	07/28/2015	08/10/2015	09/10/2015
05/06/2015	Cash	$1.30	04/28/2015	05/08/2015	06/10/2015
02/06/2015	Cash	$1.10	01/27/2015	02/10/2015	03/10/2015
11/06/2014	Cash	$1.10	10/28/2014	11/10/2014	12/10/2014
08/06/2014	Cash	$1.10	07/29/2014	08/08/2014	09/10/2014
05/07/2014	Cash	$1.10	04/29/2014	05/09/2014	06/10/2014
02/06/2014	Cash	$0.95	01/28/2014	02/10/2014	03/10/2014
11/06/2013	Cash	$0.95	10/28/2013	11/08/2013	12/10/2013
08/07/2013	Cash	$0.95	07/30/2013	08/09/2013	09/10/2013
05/08/2013	Cash	$0.95	04/30/2013	05/10/2013	06/10/2013
02/06/2013	Cash	$0.85	01/29/2013	02/08/2013	03/09/2013
11/07/2012	Cash	$0.85	10/30/2012	11/09/2012	12/10/2012
08/08/2012	Cash	$0.85	07/31/2012	08/10/2012	09/10/2012
05/08/2012	Cash	$0.85	04/24/2012	05/10/2012	06/09/2012
02/08/2012	Cash	$0.75	01/31/2012	02/10/2012	03/10/2012
11/08/2011	Cash	$0.75	10/25/2011	11/10/2011	12/10/2011
08/08/2011	Cash	$0.75	07/26/2011	08/10/2011	09/10/2011
05/06/2011	Cash	$0.75	04/26/2011	05/10/2011	06/10/2011
02/08/2011	Cash	$0.65	01/25/2011	02/10/2011	03/10/2011
11/08/2010	Cash	$0.65	10/26/2010	11/10/2010	12/10/2010
08/06/2010	Cash	$0.65	07/27/2010	08/10/2010	09/10/2010
05/06/2010	Cash	$0.65	04/27/2010	05/10/2010	06/10/2010
02/08/2010	Cash	$0.55	01/26/2010	02/10/2010	03/10/2010
11/06/2009	Cash	$0.55	10/27/2009	11/10/2009	12/10/2009
08/06/2009	Cash	$0.55	07/28/2009	08/10/2009	09/10/2009
05/06/2009	Cash	$0.55	04/28/2009	05/08/2009	06/10/2009
02/06/2009	Cash	$0.50	01/27/2009	02/10/2009	03/10/2009
11/06/2008	Cash	$0.50	10/28/2008	11/10/2008	12/10/2008
08/06/2008	Cash	$0.50	07/29/2008	08/08/2008	09/10/2008
05/07/2008	Cash	$0.50	04/29/2008	05/09/2008	06/10/2008
02/06/2008	Cash	$0.40	01/29/2008	02/08/2008	03/10/2008
11/07/2007	Cash	$0.40	10/30/2007	11/09/2007	12/10/2007
08/08/2007	Cash	$0.40	07/31/2007	08/10/2007	09/10/2007
05/08/2007	Cash	$0.40	04/24/2007	05/10/2007	06/09/2007
02/07/2007	Cash	$0.30	01/30/2007	02/09/2007	03/10/2007
11/08/2006	Cash	$0.30	10/31/2006	11/10/2006	12/09/2006
08/08/2006	Cash	$0.30	07/25/2006	08/10/2006	09/09/2006
05/08/2006	Cash	$0.30	04/25/2006	05/10/2006	06/10/2006
11/08/2005	Cash	$0.20	10/25/2005	11/10/2005	12/10/2005
08/08/2005	Cash	$0.20	07/26/2005	08/10/2005	09/10/2005
05/06/2005	Cash	$0.20	04/26/2005	05/10/2005	06/10/2005
02/08/2005	Cash	$0.18	01/25/2005	02/10/2005	03/10/2005
11/08/2004	Cash	$0.18	10/26/2004	11/10/2004	12/10/2004
08/06/2004	Cash	$0.18	07/27/2004	08/10/2004	09/10/2004
05/06/2004	Cash	$0.18	04/27/2004	05/10/2004	06/10/2004
02/06/2004	Cash	$0.16	01/27/2004	02/10/2004	03/10/2004
11/06/2003	Cash	$0.16	10/28/2003	11/10/2003	12/10/2003
08/06/2003	Cash	$0.16	07/29/2003	08/08/2003	09/10/2003
05/07/2003	Cash	$0.16	04/29/2003	05/09/2003	06/10/2003
02/06/2003	Cash	$0.15	01/28/2003	02/10/2003	03/10/2003
11/06/2002	Cash	$0.15	10/29/2002	11/08/2002	12/10/2002
08/07/2002	Cash	$0.15	07/30/2002	08/09/2002	09/10/2002
05/08/2002	Cash	$0.15	04/30/2002	05/10/2002	06/10/2002
02/06/2002	Cash	$0.14	01/29/2002	02/08/2002	03/09/2002
11/07/2001	Cash	$0.14	10/30/2001	11/09/2001	12/10/2001
08/08/2001	Cash	$0.14	07/31/2001	08/10/2001	09/10/2001
05/08/2001	Cash	$0.14	04/24/2001	05/10/2001	06/09/2001
02/07/2001	Cash	$0.13	01/31/2001	02/09/2001	03/10/2001
11/08/2000	Cash	$0.13	10/31/2000	11/10/2000	12/09/2000
08/08/2000	Cash	$0.13	07/25/2000	08/10/2000	09/09/2000
05/08/2000	Cash	$0.13	04/25/2000	05/10/2000	06/10/2000
02/08/2000	Cash	$0.12	01/25/2000	02/10/2000	03/10/2000
11/08/1999	Cash	$0.12	10/26/1999	11/10/1999	12/10/1999
08/06/1999	Cash	$0.12	07/27/1999	08/10/1999	09/10/1999
05/06/1999	Cash	$0.24	04/27/1999	05/10/1999	06/10/1999
02/08/1999	Cash	$0.22	01/26/1999	02/10/1999	03/10/1999
11/06/1998	Cash	$0.22	10/27/1998	11/10/1998	12/10/1998
08/06/1998	Cash	$0.22	07/28/1998	08/10/1998	09/10/1998
05/06/1998	Cash	$0.22	04/28/1998	05/08/1998	06/10/1998
02/06/1998	Cash	$0.20	01/27/1998	02/10/1998	03/10/1998
11/06/1997	Cash	$0.20	10/28/1997	11/10/1997	12/10/1997
08/07/1997	Cash	$0.20	07/29/1997	08/11/1997	09/10/1997
05/07/1997	Cash	$0.40	04/29/1997	05/09/1997	06/10/1997
02/06/1997	Cash	$0.35	01/28/1997	02/10/1997	03/10/1997
11/06/1996	Cash	$0.35	10/28/1996	11/08/1996	12/10/1996
08/07/1996	Cash	$0.35	07/30/1996	08/09/1996	09/10/1996
05/08/1996	Cash	$0.35	04/17/1996	05/10/1996	06/10/1996
02/07/1996	Cash	$0.25	01/30/1996	02/09/1996	03/09/1996
11/08/1995	Cash	$0.25	10/30/1995	11/10/1995	12/09/1995
08/08/1995	Cash	$0.25	07/25/1995	08/10/1995	09/09/1995
05/04/1995	Cash	$0.25	04/25/1995	05/10/1995	06/10/1995

2. $6.68 Annual Dividend in 2024 – A Thirteen-fold Increase

In 1999, IBM was paying shareholders just $0.12 per share each quarter. Fast forward to 2024, and that figure has risen to $1.67 per quarter or $6.68 annually. That’s more than a thirteen-fold increase in just over two decades. This upward trend demonstrates IBM dividend history as a reflection of its financial strength and commitment to returning capital to shareholders, even as it reinvents its business model.

3. Dividend Yield Beats the S&P 500 Average

• IBM’s dividend yield in 2024: 2.9% (Figure may vary)
• Average dividend yield, last 5 years: 4.75%

IBM dividend history also indicates a current dividend yield of around 2.9%, which is higher than the S&P 500’s average of about 1.6% based on recent data. This higher yield makes IBM an attractive option for income-focused investors looking for reliable dividends from a blue-chip company.

4. How IBM’s Dividends Compare to Industry Peers

Unlike Amazon and Google, which reinvest all their profits into growing the business, IBM chooses to share its profits with investors. Compared to Apple and Microsoft, IBM has a longer history of paying dividends and offers a higher return.

For example, while Apple’s dividend yield is about 0.5% and Microsoft’s is around 0.9%, IBM’s is much higher at 2.9%. This makes IBM a unique choice for investors who want to receive dividends and invest in the tech industry.

5. IBM’s ~50% Payout Ratio Reflects Its Stability

IBM dividend history reveals that the current Price-to-Earnings (P/E) ratio stands at 28.66, which is relatively high compared to some of its peers. Regarding the payout ratio, IBM’s current payout ratio stands at ~50%. This means the company is paying out about half of its profits as dividends while reinvesting the rest back into the business.

This level is considered stable, suggesting IBM is capable of maintaining its dividends without significant risk of cuts, while also retaining enough earnings to reinvest in growth and innovation.

6. Dividend Growth vs. Stock Price Performance

While IBM is known for paying steady dividends, its stock hasn’t performed as well as popular tech companies like Apple and Amazon. In the past five years, IBM’s stock price has remained relatively flat, ranging from $115 to $150. 

However, when you consider IBM dividend history and the dividend payments, the total return looks far more attractive. For income-focused investors, this hybrid of moderate price appreciation and consistent dividend growth represents a compelling value proposition.

7. IBM’s ~5% Dividend Growth Rate Beats Inflation Consistently

IBM has consistently increased its dividend over the past decade, with an average annual dividend growth rate (DGR) of about 5.96% over the last 10 years. In comparison, the average inflation rate in the U.S. during this period has been around 2% to 3%.

This growth in dividends is a positive sign for investors looking to hedge against inflation, as the consistent increases help offset rising costs of goods and services.

8. Quarterly Payouts Make IBM a Consistent Income Generator

IBM dividend history reveals that IBM pays its investors dividends every quarter, which provides them with a reliable source of income. The company consistently increases the dividend amount every May, ensuring a steady income stream. For example, the quarterly dividend went up from $1.66 in May 2023 to $1.67 in May 2024, following its tradition of raising dividends annually.

9. IBM’s Largest Dividend Hike in a Decade

In 2018, IBM had its largest increase in dividend payout over the past ten years. The company raised its quarterly dividend from $1.50 to $1.57, which was almost a 4.7% increase. This marked the 23rd consecutive year of IBM increasing its dividend and represented a 5% rise in dividend payouts.

10. Surviving Market Downturns without Missing a Beat

During the 2008-2009 financial crisis, while many companies slashed or suspended dividends, IBM dividend history indicates that IBM continued to increase its dividend. For instance, in 2009, IBM raised its quarterly dividend from $0.50 to $0.55. Its earnings per share grew from $8.93 in 2008 to $10.01 in 2009. Even during the pandemic in 2020, IBM’s quarterly dividend remained steady at $1.63.

11. IBM’s Dividend Growth through Acquisitions and Transformation

IBM has been able to maintain and grow its dividend by making strategic acquisitions and transforming its business. Over the last decade, the company has shifted from hardware to cloud computing, AI, and quantum computing. 

In addition, the 2019 acquisition of Red Hat, a major open-source software provider, for $34 billion, is a prime example of this shift. Despite these investments, IBM dividend history reflects that IBM has continued to prioritize its dividend, demonstrating its commitment to investors.

12. The Importance of the Ex-Dividend Date for Investors

Understanding the important dates for IBM dividend history is crucial for investors. IBM’s ex-dividend date is usually set about a month before the actual payment date. In 2024, the ex-dividend date was August 9, and the payment date was September 10. Investors who bought IBM shares after August 9 would not receive that quarter’s dividend. Being aware of these dates is essential for all investors, as it can directly affect their returns.

Is IBM the Right Dividend Stock for You?

IBM dividend history suggests that it is not just a technology leader but also a dividend aristocrat in the making. Its focus on maintaining a solid payout even in challenging times shows a company that values its shareholders. If you’re seeking a stock with a proven history of rewarding its investors, IBM deserves a place on your watchlist. 

Pankaj Gholap