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International Business Machines (XSGO:IBM) 5-Year Yield-on-Cost % : 4.41 (As of Apr. 26, 2024)


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What is International Business Machines 5-Year Yield-on-Cost %?

International Business Machines's yield on cost for the quarter that ended in Dec. 2023 was 4.41.


The historical rank and industry rank for International Business Machines's 5-Year Yield-on-Cost % or its related term are showing as below:

XSGO:IBM' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.82   Med: 4.57   Max: 7.49
Current: 4.41


During the past 13 years, International Business Machines's highest Yield on Cost was 7.49. The lowest was 1.82. And the median was 4.57.


XSGO:IBM's 5-Year Yield-on-Cost % is ranked better than
67.67% of 934 companies
in the Software industry
Industry Median: 2.235 vs XSGO:IBM: 4.41

Competitive Comparison of International Business Machines's 5-Year Yield-on-Cost %

For the Information Technology Services subindustry, International Business Machines's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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's 5-Year Yield-on-Cost % Distribution in the Software Industry

For the Software industry and Technology sector, International Business Machines's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where International Business Machines's 5-Year Yield-on-Cost % falls into.



International Business Machines 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of International Business Machines is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

International Business Machines  (XSGO:IBM) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


International Business Machines 5-Year Yield-on-Cost % Related Terms

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International Business Machines (XSGO:IBM) Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.