International Business Machines Corporation
IBMInternational Business Machines Corporation (IBM) is a Technology company that currently yields 2.86% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $102.00 and the overvaluation threshold at $245.43. International Business Machines Corporation holds a quality score of 45/100 (Average), reflecting 25 consecutive years of dividend growth with a 60% 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 56.7% downside to reach the Weiss buy zone
Undervaluation starts near $102.00, where the annual dividend would imply roughly 6.61% yield. That is 3.75% above today's yield.
Buy-zone price
$102.00
Target yield
6.61%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
25YLong dividend history supports a deeper look.
Earnings payout
60%Earnings coverage leaves room for noise.
Cash payout
53%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
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
International Business Machines Corporation is trading near its historical overvaluation band.
Current yield 2.9% vs historical max 6.3% (45% of maximum).
14 consecutive years without a dividend cut.
Conservative payout ratio of 60%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 45/100 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
$290
Year 10 Income
$436
Yield on Cost
4.51%
Total Income
$3,579
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
See what IBM dividends you actually received with Sharesight
Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗IBM Dividend Quality Score
Quality Score
Average
Key Metrics
Invest in IBM
Check International Business Machines Corporation availability and current costs on eToro
Check eToro terms and availability →DividendVisual may earn a commission if you open an account via this link, at no cost to you. Capital at risk. Not financial advice.
In-depth analysis
→ IBM Dividend Analysis ArticleRelated Reading
Collections