Comparing dividend yields
IBM (IBM) has one of the highest dividend yields in the IT industry, of 4.38%. In fiscal Q2 2018, the company paid a dividend of $1.57 with an annual run rate of $6.28 per share. In comparison, IT peers Cisco Systems (CSCO), Hewlett Packard Enterprise (HPE), Microsoft (MSFT), and Intel (INTC) have lower dividend yields, of 3.15%, 2.91%, 2.46%, and 1.58%, respectively, as shown in the chart below.
IBM’s high dividend yield has continued to lure investors. In the last year, IBM stock has risen just 0.5%, mitigated by its high dividend yield and stock repurchases. In fiscal Q2 2018, IBM bought back ~$1.8 billion in stock.
IBM has a long, uninterrupted history of paying dividends. For the last 23 years, the company has raised its dividend to boost value for shareholders. In fiscal Q1 2018, the tech giant raised its dividend by 4.7%, compared with 7.1% in the previous year.
In fiscal Q2 2018, IBM distributed ~$2.8 billion in dividends, compared with $2.7 billion in fiscal Q2 2017. In the last five years, the company has paid ~$24 billion in dividends at an average of ~$4.8 billion per year.