International Business Machines Corporation
IBMInternational Business Machines Corporation (IBM) is a Technology company that currently yields 2.23% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $101.85 and the overvaluation threshold at $245.06. International Business Machines Corporation holds a quality score of 50/100 (Average), reflecting 25 consecutive years of dividend growth with a 59% payout ratio. The 5-year dividend CAGR stands at 1.5%.
IBM Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 66.3% downside to reach the Weiss buy zone
Undervaluation starts near $101.85, where the annual dividend would imply roughly 6.61% yield. That is 4.38% above today's yield.
Buy-zone price
$101.85
Target yield
6.61%
Research checklist
What to clear before buying the yield
Updated Jul 9, 2026
Dividend durability
25YLong dividend history supports a deeper look.
Earnings payout
59%Earnings coverage leaves room for noise.
Cash payout
49%Free cash flow coverage supports the payment.
Dividend growth
1.5%Lower growth changes the return trade-off.
What changed
What changed since the last update
2026-07-08 → 2026-07-09
Price
-1.3%$306.13 → $302.05
Price fell 1.3% since the prior snapshot.
Why Now?
International Business Machines Corporation is trading near its historical overvaluation band.
Current yield 2.2% vs historical max 6.3% (35% of maximum).
14 consecutive years without a dividend cut.
Conservative payout ratio of 59%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 50/100 quality score says the headline yield needs extra skepticism.
Start by checking whether payout coverage and business durability still support the dividend.
IBM Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$226
Year 10 Income
$320
Yield on Cost
3.28%
Total Income
$2,702
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Sharesight ↗IBM Dividend Quality Score
Quality Score
Average
Key Metrics
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