From 24/7 Wall St. · Chris Lange · · 1m 40s
IBM's 31-year dividend streak masks stagnant growth
IBM has raised dividends for three decades, but recent increases are so tiny they barely beat inflation.
In brief
IBM has raised dividends for three decades, but recent increases are so tiny they barely beat inflation. A long dividend streak sounds impressive until you see the actual money: IBM's latest raise was just one penny per quarter, far below the pace of inflation or what competitors are delivering. Originally reported by…
31 years of dividend raises
IBM raised its dividend for the 31st consecutive year in April 2026, extending a streak that dates back to 1916. But the latest increase was just one penny per quarter.
“IBM has paid consecutive quarterly dividends every year since 1916 and, with the April declaration, notched its 31st consecutive year of dividend increases.”
The raises keep shrinking
IBM's dividend increases have slowed dramatically. From a 20-cent quarterly jump in 2015, the company has made five straight one-cent bumps since 2019, totaling just four cents annually.
“Five straight one-cent bumps ($1.63, $1.64, $1.65, $1.66, $1.67, $1.68, $1.69) is a streak preserved by rounding.”
Peers are growing faster
Cisco, Microsoft, and Oracle have all grown their dividends more aggressively. Microsoft jumped from 13 cents in 2010 to 98 cents today, while IBM offers the highest yield but slowest growth of the group.
“IBM offers the highest yield of the group (2.83%) and the slowest growth.”
Cash is there, priorities shifted
IBM generated $14.73 billion in free cash flow in 2025 against $6.255 billion in dividends, so the payout is safe. But the company is redirecting cash toward acquisitions, debt, and quantum computing investments.
“Cash coverage is ample. IBM produced free cash flow of $14.73B in 2025 against a dividend payout of $6.255 billion.”
One penny doesn't beat inflation
A one-cent quarterly raise equals four cents annually, well below the 3% cost-of-living increase. With IBM shares down 20.71% year to date, dividend growth alone won't deliver real returns.
“A one-cent quarterly bump does not clear a 3% cost-of-living increase.”
The streak matters less than growth
IBM's dividend is safe and the streak is intact, but investors seeking real income growth should look elsewhere. The company's future now depends on AI and quantum computing success, not dividend expansion.
“Treat IBM as a fixed-income substitute with an intact streak. Investors expecting real income growth should watch Microsoft.”
Here's the gist
A long dividend streak sounds impressive until you see the actual money: IBM's latest raise was just one penny per quarter, far below the pace of inflation or what competitors are delivering.
