IBM’s Dividend Yield Exceeds 3% Amid Market Fluctuations
On Monday, International Business Machines Corp (Symbol: IBM) saw its shares yield above the 3% mark, with the quarterly dividend annualized to $6.68. The stock traded as low as $214.50. Dividends are key for investors, as they historically contribute significantly to the overall returns of the stock market. For example, if an investor bought shares of the S&P 500 ETF (SPY) on December 31, 1999, they would have paid $146.88 per share. By December 31, 2012, the share price had declined to $142.41, marking a total decrease of $4.67 over that period. However, shareholders collected $25.98 per share in dividends, resulting in a positive total return of 23.36%. Even with dividends reinvested, the average annual total return was about 1.6%. This context makes a yield above 3% particularly enticing if deemed sustainable. Being a part of the S&P 500, IBM holds a notable position among large-cap companies.
The predictability of dividend amounts can vary, often influenced by each company’s profitability. To assess whether IBM’s current dividend is likely to persist, analyzing its historical performance may provide valuable insights.
IBM has consistently increased its dividend for over 20 years. For additional stocks with consistent dividend growth, consider exploring the Dividend Aristocrats List available on Dividend Channel.
Click here to discover the 9 other dividend stocks that recently went on sale »
Also see:
- BDC Investor
- AMSF Dividend History
- Top Ten Hedge Funds Holding GTWN
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
