During the past 12 months, International Business Machines's average Dividends Per Share Growth Rate was 0.60% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 0.60% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 0.60% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 2.50% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of International Business Machines was 34.60% per year. The lowest was -40.90% per year. And the median was 8.40% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
International Business Machines (XBUL:IBM) Forward Dividend Yield % Explanation
Over the long term, the return from dividends has been a significant contributor to the total returns produced by equity securities. Studies by Elroy Dimson, Paul Marsh, and Mike Staunton of Princeton University (2002) found that a market-oriented portfolio, which included reinvested dividends, would have generated nearly 85 times the wealth generated by the same portfolio relying solely on capital gains.
Dividends may also qualify a lower tax rate for investors.
In dividends investing, Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
International Business Machines Forward Dividend Yield % Related Terms
XBUL:IBM vs ACN, FISV, FIS: Forward Dividend Yield % Comparison
For the Information Technology Services subindustry, International Business Machines's Forward Dividend Yield %, along with its competitors' market caps and Forward Dividend Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines Forward Dividend Yield % vs Software Industry
For the Software industry and Technology sector, International Business Machines's Forward Dividend Yield % distribution charts can be found below:
* The bar in red indicates where International Business Machines's Forward Dividend Yield % falls into.
International Business Machines Forward Dividend Yield % Calculation
Dividend Yield measures how much a company pays out in dividends each year relative to its share price.
International Business Machines Recent Full-Year* Dividend History
Amount
Ex-date
Record Date
Pay Date
Type
Frequency
Forex Rate
USD 1.690000
2026-05-08
2026-05-08
2026-06-10
Cash Dividend
quarterly
USD:EUR 0.856000
USD 1.680000
2026-02-10
2026-02-10
2026-03-10
Cash Dividend
quarterly
USD:EUR 0.846000
USD 1.680000
2025-11-10
2025-11-10
2025-12-10
Cash Dividend
quarterly
USD:EUR 0.865000
USD 1.680000
2025-08-08
2025-08-08
2025-09-10
Cash Dividend
quarterly
USD:EUR 0.859000
* GuruFocus has an internal rule that if the most recent dividend payment frequency is at least 4 times a year, then the full year will be calculated according to the frequency of payment or the one-year time frame, whichever is stricter.
* GuruFocus converts dividend currency to local traded share price currency in order to calculate dividend yield. Please refer to the last column "Forex Rate" in the above table.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Dividend Yield % of 2.53% mean?
International Business Machines (XBUL:IBM) has a Forward Dividend Yield % of 2.53% as of Jul. 03, 2026. Forward dividend yield is the ratio of company's expected dividends to the share price. View historical data on International Business Machines and its competitors. According to the industry distribution chart, International Business Machines ranks #519 out of 997 companies in the Software industry, placing it in the top 52.1%.
Is International Business Machines' Forward Dividend Yield % too high?
International Business Machines' current Forward Dividend Yield % is 2.53%. The Software industry median Forward Dividend Yield % is 2.51. International Business Machines' value of 2.53% is 0.8% above this industry median. Based on the distribution chart, International Business Machines ranks #519 out of 997 companies in the Software industry, which is below the industry midpoint. Overall, International Business Machines has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Forward Dividend Yield % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #519 out of 997 companies for Forward Dividend Yield %. This places International Business Machines in the lower half of its industry. The industry median Forward Dividend Yield % is 2.51. International Business Machines' value of 2.53% is 0.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Dividend Yield % for a Software company?
The median Forward Dividend Yield % among Software companies is 2.51, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a Forward Dividend Yield % significantly above this median, while those in the bottom quartile fall well below. However, Forward Dividend Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Forward Dividend Yield % of 2.53% is 0.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Dividend Yield % mean?
A high Forward Dividend Yield % can signal that a stock is expensive relative to its fundamentals. Forward dividend yield is the ratio of company's expected dividends to the share price. View historical data on International Business Machines and its competitors. For the Software industry, the median Forward Dividend Yield % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Forward Dividend Yield % is 2.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (XBUL:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €191.71, compared to a current price of €232.10 — trading 21.1% above its estimated fair value. The current Forward Dividend Yield % is 2.53% and 0.8% above the Software industry median of 2.51. International Business Machines' overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Dividend Yield % calculated?
Forward Dividend Yield % is calculated from a company's financial statements. For International Business Machines (XBUL:IBM), the current Forward Dividend Yield % is 2.53% as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Business Machines (XBUL:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.10 is trading 21.1% above its estimated GF Value™ of €191.71.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XBUL:IBM:
Forward Dividend Yield %: 2.53%
GF Value™: €191.71 vs. price of €232.10 (21.1% above fair value)
Industry Position: 0.8% above the Software median (#519 of 997)
No single metric tells the full story. See the XBUL:IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Business Machines Business Description
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
76GF Score
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