IBM share dividend and yield

What is IBM's dividend payment?

In 2021 and for the fiscal year 2020, IBM Group paid a dividend of $6,334 per share to its shareholders.

Recently, IBM announced a further increase in its dividend to $6.60 per share in 2022 and fiscal 2021 in four installments of $1.65.

When does IBM pay its dividend?

IBM Group determines the amount of its annual dividend based on its financial results for the previous year. For example, in 2022, the dividend is for the financial year 2021. The General Meeting of Shareholders is responsible for approving this dividend and usually meets in April.

Since IBM is a US stock, its dividend is paid quarterly, i.e. four times a year. Payments are made in June, September, December and March of the following year.

In 2021, the first dividend was detached on 07 May and paid on 10 June, the second was detached on 09 August and paid on 10 September, the third was detached on 09 November and paid on 10 December and the fourth was detached on 10 February and paid on 10 March.

What is the next expected dividend for IBM shares?

The next dividend to be paid by IBM to its shareholders is the first quarterly dividend of the 2021 financial year, which will be received in 2022. 

The amount of this dividend was announced in April 2022 and has increased compared to last year. IBM announced a payment of $6.60 per share this year, with the first payment of $1.65 due in June, on 10 June 2022 with an ex-dividend date of 9 May.

The payment dates of the next quarterly dividends have not been communicated.

IBM share dividend history:

IBM has been paying a dividend to its shareholders for many years now. In fact, the company has been paying out a portion of its profits to shareholders continuously since 1980, i.e. for more than 40 years, with a dividend that has continued to increase over the past 27 years. Here is a complete history of the evolution of the IBM dividend over 10 years.

• In 2021, IBM's dividend was $6,334 with a 1.77% increase
• In 2020, IBM's dividend was $6.224 with a 1.24% increase
• In 2019, IBM's dividend was $6,147 with an increase of 3.54%.
• In 2018, IBM's dividend was $5,937 with a 5.25% increase
• In 2017, IBM's dividend was $5,641 with an increase of 7.27%.
• In 2016, IBM's dividend was $5,258 with a 10% increase
• In 2015, IBM's dividend was $4,780 with a 17.65% increase
• In 2014, IBM's dividend was $4,063 with an increase of 14.86%.
• In 2013, IBM's dividend was $3,537 with an increase of 12.12%.
• In 2012, IBM's dividend was $3,155 with an increase of 13.79%.

The historical data for IBM's dividend clearly shows a rapid increase in its amount over time. For example, over the last 5 years, the dividend has shown a relatively slow average increase of 2.61% per year, but over the last 10 years, the dividend has increased by an average of 7.36% per year.

What is the dividend yield on IBM shares?

The yield of the IBM share is the yield of its dividend and can be calculated by dividing the amount of this dividend by the share price of this stock. 

For example, the dividend that was paid by IBM in 2021 showed a yield of 4.76% and the dividend paid in 2022 will show a yield of 4.79%.

IBM's payout ratio is one of the highest in the industry and currently stands at 125.72%. This means that the company is paying out more in dividends than it is earning.

What is the multi-year dividend yield on IBM shares?

Over the last 10 years, IBM Group has paid a dividend with an average yield of 4.18%, which is slightly below the 2022 yield. Here is its history:

• In 2022, the dividend yield is 4.79%.
• In 2021, the yield on this dividend was 4.76%.
• In 2020, the dividend yield was 5.27%.
• In 2019, the dividend yield was 4.13%.
• In 2018, the dividend yield was 4.61%.
• In 2017, the dividend yield was 3.90%.
• In 2016, the dividend yield was 3.14%.
• In 2015, the dividend yield was 4.04%.
• In 2014, the dividend yield was 2.79%.
• In 2013, the dividend yield was 2.18%.
• In 2012, the dividend yield was 1.68%.