IBM – Dividend Returns, History & Calculator

Dividend Champion 30 Years

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financ

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Company Info

Symbol IBM
Company International Business Machines
Sector Technology
Industry Information Technology Services
Website Visit
Market Cap $223,829.3M

Price Data

Price $238.52
Price Change +2.18
Price Change % +0.92%
Next Earnings Report Apr 22, 2026
Low (52W) $214.50
High (52W) $324.90

Dividend Data

Div Yield 2.82%
5Y Avg Yield 3.56%
Current Div $1.680
Payouts/Year 4
Annualized $6.720
Previous Div $1.680
Ex-date Feb 10, 2026
Dividend Pay Date Mar 10, 2026

Growth Rates

Chowder Number 4.3
DGR 1Y 0.6%
DGR 3Y 0.6%
DGR 5Y 1.5%
DGR 10Y 3.1%

Total Returns

TTR 1Y - With Specials 3.0%
TTR 3Y - With Specials 28.1%
TTR 1Y - No Specials 3.0%
TTR 3Y - No Specials 28.1%

Fair Value

Fair Value (P/E 10) $158.73
FV (P/E 10) % 50.0%
Fair Value (Peter Lynch) $278.25
FV (Peter Lynch) % -14.0%
Fair Value (Blended) $175.07
FV (Blended) % 36.0%

Financial Metrics

Revenue 1Y 7.6%
NPM 15.7%
CF/Share $14.06
ROE 35.2%
Current R 1.0x
Debt/Capital 64.0%
ROTC 12.2%
P/E 21.4x
P/BV 6.9x
PEG 2.58
📊 Financial data last updated: March 30, 2026 3:21 pm
Invest in IBM with Interactive Brokers

IBM 10-yr Total Return ($10,000 invested)

This analysis of IBM demonstrates the power of dividend reinvestment over a 10-year period with a $10,000 initial investment. The dividend reinvestment strategy delivered a 12.5% CAGR, representing strong long-term performance. Recent 5-year performance has been particularly strong at 21.9% annually, outpacing the 10-year average. The DRIP strategy provided 20% more total return compared to collecting dividends as cash, highlighting the compounding effect of reinvestment.

With DRIP No DRIP

Total Return with and without DRIP (IBM)

Over the selected period, investing $10,000 in IBM would grow to $52,549 with DRIP (425.5%), and $37,938 without DRIP (279.4%).

IBM Dividend Reinvestment Snowball

Investing $10,000 + $100/mo in IBM with historic price growth (5.38%) and dividend growth (2.30%) produces dramatically different outcomes depending on whether you reinvest dividends.

After 20 Years

Your Investment: $34,000

With DRIP

Portfolio: $96,439

Annual Dividend: $1,471

Yield on Cost: 4.33%

Total Dividends: $16,414

No DRIP

Portfolio: $84,407

Total Dividends: $13,386

After 30 Years

Your Investment: $46,000

With DRIP

Portfolio: $202,422

Annual Dividend: $2,295

Yield on Cost: 4.99%

Total Dividends: $34,876

No DRIP

Portfolio: $162,065

Total Dividends: $26,322

Milestones on the way

By year 13, the compounding really starts to show. Your total dividends collected reach $7,937 against a total investment of $25,600. At this point, your portfolio is throwing off $991 per year in dividends alone.

By year 17, the annual dividend climbs to around your initial contribution. For a starting investment of $10,000, the yearly dividend now sits at approximately $1,256, a powerful “income on autopilot” milestone.

After two decades, cumulative dividends total $16,414 versus $34,000 invested, nearly a 48% recovery of capital purely from income. Yield on cost reaches 4.33%.

At year 25, the income engine takes over. The portfolio’s annual dividend of $1,861 is greater than total contributions to date ($40,000), and cumulative dividends exceed $24,629.

By year 30, the DRIP snowball is in full force. Yearly income reaches $2,295, cumulative dividends total $34,876, and the DRIP portfolio value stands at $202,422, compared with $162,065 if dividends weren’t reinvested.

How we estimate these numbers

We use the latest calculator inputs for IBM, price $243.39, dividend per period $1.68 (4x/year), along with historic growth assumptions: price growth 5.38% and dividend growth 2.30% annually.

We simulate month by month for 30 years. Every month, a $100 contribution is added and converted to shares at that month’s price. Dividends are paid roughly evenly across the year based on the dividend frequency; in the DRIP path, each payout immediately buys additional shares at the then-current price. In the No-DRIP path, dividends accrue as cash. Prices grow using a monthly rate derived from the annual price growth. Dividends per share increase once per year at the annual dividend growth rate.

This model isn’t investment advice; it’s a simple, transparent framework that illustrates how reinvesting dividends can accelerate both income and total return over time.

Projected Future Returns & Dividends for IBM

Based on past 10-year performance, here are IBM growth metrics:

Share price CAGR of +6.06%
Dividend CAGR of +3.06%

Using IBM CAGR metrics, we can estimate that your initial $10,000 investment, over the next 10 years, should grow as follows:

IBM (DRIP)IBM (No DRIP)
Current Price$248.44$248.44
Start Shares40.2540.25
Start Value$10,000$10,000
After 10 years:
Final Share Count50.6240.25
Dividends Payment$9.08$9.08
Annual Dividends$451$366
Yield on cost4.51%3.66%
Share Price$447.46$447.46
Total Dividends$3,600$3,205
Final Value$22,648$21,215

Estimated Future Value + Dividends – IBM

Dividend History: Payments & Yield

Shows quarterly dividend payments with trailing yield and a 5-year rolling average overlay. Use the range pills to switch the visible period.

Yield Dividend

Dividend Growth

Lifetime quarterly dividend amounts, with range controls for 1Y/2Y/5Y/10Y. Useful to visualize the cadence and pace of dividend increases over time.

Dividend

Dividend Payments & Yield

Quarterly dividends with TTM yield and a 5‑year rolling average overlay. Helps compare current yield versus recent history across different ranges.

Dividend 5-yr Rolling AVG Yield

IBM Dividend History

Ex-Date Payment Date Amount TTM Yield Forward Yield Price on Ex-Date
02/10/202602/10/2026$1.682.30%2.30%$291.76
11/10/202511/10/2025$1.682.17%2.17%$309.13
08/08/202508/08/2025$1.682.77%2.77%$242.27
05/09/202505/09/2025$1.682.68%2.70%$249.20
02/10/202502/10/2025$1.672.68%2.68%$249.27
11/12/202411/12/2024$1.673.16%3.17%$210.86
08/09/202408/09/2024$1.673.48%3.49%$191.45
05/09/202405/09/2024$1.674.00%4.02%$166.27
02/08/202402/08/2024$1.663.60%3.60%$184.36
11/09/202311/09/2023$1.664.52%4.53%$146.62
08/09/202308/09/2023$1.664.65%4.66%$142.49
05/09/202305/09/2023$1.665.46%5.48%$121.17
02/09/202302/09/2023$1.654.93%4.93%$133.75
11/09/202211/09/2022$1.654.80%4.80%$137.39
08/09/202208/09/2022$1.655.08%5.10%$129.47
05/09/202205/09/2022$1.654.83%4.91%$134.44
02/10/202202/10/2022$1.644.81%4.91%$133.52
11/09/202111/09/2021$1.645.24%5.43%$120.85
08/09/202108/09/2021$1.574.63%4.64%$135.04
05/07/202105/07/2021$1.574.49%4.51%$139.06
02/09/202102/09/2021$1.565.34%5.34%$116.73
11/09/202011/09/2020$1.565.63%5.64%$110.45
08/07/202008/07/2020$1.565.20%5.22%$119.46
05/07/202005/07/2020$1.565.35%5.38%$115.90
02/07/202002/07/2020$1.554.22%4.22%$146.66
11/07/201911/07/2019$1.554.67%4.71%$131.63
08/08/201908/08/2019$1.554.55%4.63%$133.94
05/09/201905/09/2019$1.554.68%4.79%$129.39
02/07/201902/07/2019$1.504.72%4.72%$127.33
11/08/201811/08/2018$1.505.03%5.09%$117.95
08/09/201808/09/2018$1.504.24%4.34%$138.40
05/09/201805/09/2018$1.504.26%4.40%$136.34
02/08/201802/08/2018$1.434.07%4.07%$141.10
11/09/201711/09/2017$1.433.93%3.99%$143.69
08/08/201708/08/2017$1.434.08%4.22%$135.86
05/08/201705/08/2017$1.433.72%3.92%$146.30
02/08/201702/08/2017$1.343.18%3.18%$168.42
11/08/201611/08/2016$1.343.54%3.61%$148.35
08/08/201608/08/2016$1.343.33%3.46%$154.91
05/06/201605/06/2016$1.343.60%3.80%$140.81
02/08/201602/08/2016$1.244.10%4.10%$121.40
11/06/201511/06/2015$1.243.62%3.76%$132.17
08/06/201508/06/2015$1.243.07%3.33%$149.45
05/06/201505/06/2015$1.242.71%3.06%$162.57
02/06/201502/06/2015$1.052.81%2.81%$149.83
11/06/201411/06/2014$1.052.63%2.73%$154.36
08/06/201408/06/2014$1.052.20%2.37%$177.79
05/07/201405/07/2014$1.052.09%2.32%$180.98
02/06/201402/06/2014$0.9082.18%2.18%$166.99
11/06/201311/06/2013$0.9082.06%2.12%$171.31
08/07/201308/07/2013$0.9081.91%2.02%$180.27
05/08/201305/08/2013$0.9081.71%1.86%$195.81
02/06/201302/06/2013$0.8131.69%1.69%$192.18
11/07/201211/07/2012$0.8131.73%1.78%$182.75
08/08/201208/08/2012$0.8131.61%1.71%$190.28
05/08/201205/08/2012$0.8131.54%1.69%$192.62
02/08/201202/08/2012$0.7171.55%1.55%$184.46
11/08/201111/08/2011$0.7171.55%1.60%$179.02
08/08/201108/08/2011$0.7171.68%1.80%$158.91
05/06/201105/06/2011$0.7171.60%1.78%$161.46
02/08/201102/08/2011$0.6211.57%1.57%$158.75
11/08/201011/08/2010$0.6211.71%1.78%$140.02
08/06/201008/06/2010$0.6211.84%2.00%$124.42
05/06/201005/06/2010$0.6211.86%2.10%$118.47
02/08/201002/08/2010$0.5261.81%1.81%$116.52
11/06/200911/06/2009$0.5261.74%1.78%$118.06
08/06/200908/06/2009$0.5261.79%1.87%$112.22
05/06/200905/06/2009$0.5261.96%2.10%$100.02
02/06/200902/06/2009$0.4782.08%2.08%$91.91
11/06/200811/06/2008$0.4782.23%2.35%$81.41
08/06/200808/06/2008$0.4781.39%1.55%$123.48
05/07/200805/07/2008$0.4781.37%1.61%$118.68
02/06/200802/06/2008$0.3821.54%1.54%$99.03
11/07/200711/07/2007$0.3821.35%1.44%$106.20
08/08/200708/08/2007$0.3821.24%1.42%$108.01
05/08/200705/08/2007$0.3821.26%1.55%$98.75
02/07/200702/07/2007$0.2871.21%1.21%$95.16
11/08/200611/08/2006$0.2871.19%1.30%$88.52
08/08/200608/08/2006$0.2871.33%1.59%$72.02
05/08/200605/08/2006$0.2871.09%1.45%$79.24
02/08/200602/08/2006$0.1910.99%0.99%$77.25
11/08/200511/08/2005$0.1910.94%0.96%$79.49
08/08/200508/08/2005$0.1910.91%0.96%$79.69
05/06/200505/06/2005$0.1910.98%1.06%$71.95
02/08/200502/08/2005$0.1720.76%0.76%$89.99
11/08/200411/08/2004$0.1720.75%0.77%$89.26
08/06/200408/06/2004$0.1720.81%0.86%$79.81
05/06/200405/06/2004$0.1720.75%0.81%$84.47
02/06/200402/06/2004$0.1530.65%0.65%$94.59
11/06/200311/06/2003$0.1530.71%0.72%$85.41
08/06/200308/06/2003$0.1530.78%0.80%$76.24
05/07/200305/07/2003$0.1530.70%0.74%$82.87
02/06/200302/06/2003$0.1430.77%0.77%$74.10
11/06/200211/06/2002$0.1430.72%0.74%$77.95
08/07/200208/07/2002$0.1430.84%0.87%$66.13
05/08/200205/08/2002$0.1430.69%0.73%$78.82
02/06/200202/06/2002$0.1340.53%0.53%$101.94
11/07/200111/07/2001$0.1340.48%0.49%$108.84
08/08/200108/08/2001$0.1340.52%0.54%$99.61
05/08/200105/08/2001$0.1340.45%0.48%$112.52
02/07/200102/07/2001$0.1240.44%0.44%$111.77
11/08/200011/08/2000$0.1240.51%0.52%$95.60
08/08/200008/08/2000$0.1240.42%0.44%$113.65
05/08/200005/08/2000$0.1240.45%0.47%$104.92
02/08/200002/08/2000$0.1150.40%0.40%$113.59
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Dividend Payout Ratio

Tracks the percentage of earnings paid out as dividends each quarter. Lower and stable ratios often indicate safer, more sustainable payouts.

Payout Ratio

Dividend to Free Cash Flow Ratio

Shows dividends as a percentage of free cash flow. Consistently high values may signal limited reinvestment capacity or potential dividend risk.

Dividend/FCF Ratio

Share Price

Historical closing price with range controls. Table view includes quarter‑over‑quarter and year‑over‑year changes for additional context.

IBM Price

Price to Earnings

IBM trades at a 51.7x price-to-earnings ratio. This elevated valuation suggests investors expect strong future growth.

Price to Sales

IBM trades at a 14.7x price-to-sales ratio, providing insight into market valuation relative to revenue generation.

Revenue

IBM generated $19.7B in revenue. Revenue has grown by 30% over the period.

Net Income

IBM reported $5.6B in net income. Net income has grown by 1,267% over the period.

Revenue vs Net Income

IBM generated $19.7B in revenue with net income of $5.6B, representing a 28.4% net profit margin.

Gross Profit

IBM achieved $16.3B in gross profit, showing revenue after direct production costs.

Operating Income

IBM generated $6.9B in operating income, representing profit from core business operations.

EBITDA

IBM generated $7.9B in EBITDA, measuring operational profitability before interest, taxes, depreciation, and amortization.

Operating Cash Flow

IBM generated $6.4B in operating cash flow, demonstrating the company’s ability to convert earnings into cash.

Free Cash Flow

IBM generated $5.8B in free cash flow.

Free Cash Flow / Share

IBM generates $6.13 in free cash flow per share.

Earnings Per Share (EPS)

IBM reported $5.97 in earnings per share. EPS has grown by 1,267% over the period.

Return on Equity (ROE)

IBM delivered a 23.7% return on equity, indicating how effectively the company generates returns for shareholders.

Return on Assets (ROA)

IBM achieved a 14.2% return on assets, measuring how efficiently the company uses its assets to generate profit.

Net Profit Margin

IBM maintains a 28.4% net profit margin, showing the percentage of revenue retained as profit after all expenses.

Gross Profit Margin

IBM operates with a 82.7% gross profit margin, reflecting pricing power and cost efficiency in core operations.

Cash & Debt

IBM holds $3.0B in cash against $1.0B in debt, resulting in a net cash position of $2.0B.

Shares Outstanding

IBM has 0.9B shares outstanding.

Stock-Based Comp

IBM reported $0.5B in stock-based compensation. Over the period, stock-based compensation has increased by 30%.

FCF vs Stock Based Comp

IBM generated $5.8B in free cash flow while spending $0.5B on stock-based compensation, representing 9% of FCF.

FCF vs FCF / Share

IBM reported $5.8B in free cash flow, translating to $6.13 per share.

Revenue: Actual + Estimates

This chart tracks IBM revenue: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

EPS: Actual + Estimates

This chart tracks IBM eps: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

Net Income: Actual + Estimates

This chart tracks IBM net income: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

EBITDA: Actual + Estimates

This chart tracks IBM ebitda: actual + estimates metrics over time, providing insights into the company’s financial performance and trends.

Show Idealized Scenario (Assumes all future extra investments and dividends are made on Day 1 and reinvested instantly — this creates a best-case scenario for compounding growth.)

Portfolio Growth Over Time

Data last updated: April 1, 2026 2:19 pm

Year-by-Year Portfolio Growth (Realistic DRIP Scenario)

YearStart BalanceStart SharesShare PriceDividend / ShareDividend YieldYield on CostAnnual DividendTotal DividendsEnd SharesEnd Balance
1$10,00041$243.39$1.682.76%2.76%$300$30047$11,500
2$12,11847$256.48$1.722.68%2.82%$348$64853$13,667
3$14,40253$270.28$1.762.60%2.89%$398$1,04659$16,000
4$16,86159$284.82$1.802.53%2.96%$449$1,49565$18,510
5$19,50565$300.14$1.842.45%3.02%$501$1,99671$21,207
6$22,34771$316.29$1.882.38%3.09%$555$2,55176$24,102
7$25,39976$333.30$1.932.31%3.16%$609$3,16182$27,208
8$28,67282$351.23$1.972.24%3.24%$666$3,82687$30,537
9$32,18087$370.13$2.022.18%3.31%$723$4,54992$34,103
10$35,93892$390.04$2.062.11%3.39%$782$5,33197$37,919

Disclaimer: The information on this page is for educational and entertainment purposes only and does not constitute financial advice. Do your own research and consult a qualified financial advisor before making investment decisions. Data sources include Yahoo Finance and other third-party providers and may contain errors or delays.

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