IBM raises dividend for 30th consecutive year

Published 29/04/2025, 15:30
IBM raises dividend for 30th consecutive year

ARMONK, N.Y. - IBM (NYSE: IBM), the $216 billion technology giant, announced today that its board of directors has approved an increase in the company’s regular quarterly cash dividend. The dividend is set to rise to $1.68 per common share, bringing the annual dividend yield to 2.83%, and will be payable on June 10, 2025, to shareholders of record as of May 9, 2025.

This decision marks the 30th consecutive year that IBM has raised its quarterly cash dividend, continuing a tradition that has been maintained since 1916. According to InvestingPro data, IBM has maintained consistent dividend payments for 55 consecutive years, demonstrating the company’s long-standing commitment to delivering value to its shareholders.

IBM’s consistent dividend payments and increases are a testament to its financial stability and confidence in its business strategy. This latest increase is part of a long-standing policy that has seen the company pay uninterrupted quarterly dividends for over a century.

Investors and market watchers often view dividend announcements as indicators of a company’s financial health and management’s confidence in future earnings. IBM’s announcement is likely to be received positively by the investment community, reinforcing its reputation for providing shareholder returns.

The information regarding the dividend increase is based on a press release statement from IBM.

In other recent news, IBM has introduced new artificial intelligence capabilities within its cybersecurity services, featuring the Autonomous Threat Operations Machine (ATOM) and the X-Force Predictive Threat Intelligence (PTI) agent. This development aims to enhance threat detection and response efficiency, reducing the need for human intervention. Additionally, IBM announced a $150 billion investment strategy to boost American technology and economic growth over the next five years, with a significant portion allocated to research and development in mainframe and quantum computing.

On the financial front, Stifel analysts maintained their Buy rating on IBM stock, noting a 2% revenue growth in the first quarter and projecting over 5% revenue growth for 2025. In contrast, BMO Capital Markets adjusted its price target for IBM to $260 from $280, citing underperformance in the software and consulting segments. Oppenheimer also revised its price target for IBM to $290 from $320, while maintaining an Outperform rating, acknowledging IBM’s revenue and earnings performance slightly above expectations. Despite challenges in the consulting and infrastructure segments, IBM’s management remains optimistic, upholding its full-year revenue guidance and anticipating stronger growth in the latter half of the year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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