IBM pays dividends on the 10th of March, June, September, and December each year. The dividend record date is usually about a month before the dividend payment date.
Direct deposit of dividends
IBM provides registered stockholders with the option of depositing dividends directly into their bank account. Your dividend will be delivered by Electric Funds Transfer (EFT) immediately to your selected bank account on the due date if you use the Direct Deposit service. For further information on Direct Deposit or to request an enrollment form, contact Computershare (see contact details).
Dividend reinvestment
Dividend Reinvestment is a provision of the Computershare Investment Plan that allows IBM stockholders to purchase more shares in a straightforward and simple manner. To use the IBM Dividend Reinvestment option of the Computershare Investment Plan, you must be a stockholder of record.
You can authorize Computershare to reinvest all or a portion of your dividends in new IBM shares by filling out the IBM Dividend Reinvestment enrollment form (see contact details). You can either invest the entire dividend received on your IBM common stock or specify the amount of shares for which a dividend should be paid to you by check on the Form. Computershare will reinvest the dividend on the remaining shares in your account. Participants in the Dividend Reinvestment Program pay a charge of 2% of the dividend reinvested, up to a maximum of $3.00 per reinvestment.
Loss or theft of dividend payments
If you feel your dividend check has been lost or stolen, or if you haven’t received it within three days of the due date, please contact Computershare right away. A stop payment order will be put against the original check and a replacement check will be issued to you if you authorize it. The original check is no longer valid and should not be cashed if received once a dividend check has been replaced.
By contacting Computershare, you can replace a dividend check (see contact information)
Does IBM pay dividends quarterly?
ARMONK, NEW YORK, OCT. 26, 2021 – The board of directors of IBM (NYSE: IBM) announced today a regular quarterly cash dividend of $1.64 per common share, payable on December 10, 2021 to stockholders of record on November 10, 2021.
This $1.64 per share dividend is the first to be paid by IBM following Kyndryl’s scheduled separation on November 3, 2021.
With this dividend, IBM will have paid dividends in a row for the first time since 1916.
How much is IBM’s dividend?
However, there are other reasons why investors are avoiding the stock. For starters, keep in mind that IBM (IBM) is appealing to investors in part because of its 5.3 percent dividend yield, which is the highest of any Dow Jones Industrial Average stock and one of the top in the S&P 500.
How long has IBM paid a dividend?
IBM’s hybrid cloud computing approach makes logical, and it has the ability to drive sales and earnings growth in the coming years. However, IBM has been subjecting investors to years of revenue and earnings losses to get to this point. The stock has also had a bad run. IBM’s stock has dropped roughly 33% from its all-time high.
Throughout it all, IBM’s dividend has increased. The latest raise was announced on April 27, pushing the company’s yearly dividend hike streak to 26 years. Since 1916, the corporation has paid quarterly dividends without interruption, which is an exceptional accomplishment.
How often is 3M dividend?
From $0.325 per share in 1989 to $5.88 per share in 2020, 3M has grown its regular dividend every year, or 10% compounded annually. When annualized, the current quarterly dividend amounts $5.92/share, for a dividend yield of 3%.
How often are dividends paid?
What is the frequency of dividend payments? Dividends are normally paid quarterly in the United States, while some corporations pay them monthly or semiannually. Each dividend must be approved by the board of directors of the corporation. The corporation will then announce when the dividend will be paid, how much it will be, and when it will go ex-dividend.
How many times has IBM split?
The 15th IBM stock split occurred on May 26, 1999. IBM has also distributed 26 equity dividends. A stock dividend is a dividend payment given in stock rather than cash to stockholders. The most recent IBM stock split was in 1999, while the most recent stock dividend disbursement was in 1967. See our 15 stock splits and 26 stock dividends for more details.
How and when are stock split shares delivered?
IBM used book entry to deliver stock split shares in 1997 and 1999 (the final two stock splits). Prior to 1997, shares were supplied in certificate form, and the stock certificates were mailed directly to each stockholder’s address of record. Stock split shares are credited to stockholder accounts on the stock split’s payment date. For example, our last stock split had a record date of May 10, 1999, and split shares were credited to owners via book entry on May 26, 1999, the payment date. If a stockholder would rather have a stock certificate than a book entry stock split credit, he or she could request one at any time after the split payout date.
How can I sell my book entry shares or receive a stock certificate for the shares?
- You have the option of selling your shares directly to the transfer agent. The service fee is $15.00 each sale, plus the brokerage commission (currently $0.10 per share). Requests for sales are normally processed the same day they are received, as long as they are received by 12 p.m. (ET).
- You can get a stock certificate for your shares if you want one. You can then sell your certificate through your broker, bank, credit union, or other financial institution.
- If you want to sell your shares or have them held by your bank, broker, or other financial institution, you can do so by contacting Computershare and requesting an Authorization Form and instructions. The Form should be returned to Computershare, formerly known as EquiServe, at the address shown on the book entry statement you received on or around May 26, 1999, correctly filled and signed by all registered holders with the signature(s) guaranteed. Your banking institution can assist you in filling out the Form. Your shares will be electronically transferred to the Financial Institution within 48 hours of receiving a properly completed Authorization Form.
- On the stock split statement you got on or around May 26, 1999, Computershare, then known as EquiServe, gave phone numbers and an Internet email address for the above services.
How do I adjust the cost basis to reflect the stock split?
A percentage of the cost basis of the underlying shares on which the split was paid should be allocated to the new shares acquired to establish the cost of full and fractional shares issued as a consequence of a stock split. The sum allocated to the new shares received will then be deducted from the cost basis of the underlying shares.
For example, if one share of stock cost $100 before the record date for the 2 for 1 stock split, the cost of that original one share will be lowered by 50% as a result of the 2 for 1 stock split. The cost of that half is then allocated to the one share received as a result of the stock split. The stockholder now owns two shares, each with a $50 cost basis, as a result of the stock split and cost adjustment. Each time the stock splits, a cost adjustment should be applied.
How many new shares will I receive?
For the 1999 stock split, investors got one (1) additional share for each share of IBM stock held at the close of business on May 10, 1999. On or around May 26, 1999, book entry statements for the extra shares were mailed to stockholders of record. (For example, if you owned 50 shares, you would receive a book entry statement for another 50 shares, bringing your total to 100.)
A portion of the cost basis of the underlying shares on which the split or dividend was paid should be allocated to the new shares received using the figures on the list of stock dividends and stock splits to determine the cost of full and fractional shares issued as a result of stock splits and stock dividends. The sum allocated to the new shares received will then be deducted from the cost basis of the underlying shares.
For example, if one share of stock cost $100 before the effective date of the 2 for 1 stock split, the cost of the original one share is decreased by 50% as a result of the stock split, and the cost allocated to the one share received from the stock split is 50% of the original cost of the one share. The stockholder now owns two shares, each with a $50 cost basis, as a result of the stock split and cost adjustment. Each time the stock splits, a cost adjustment should be applied.
How will stock splits affect the trading of IBM stock?
There are two independent markets for IBM from soon before the stock split record date through the stock split distribution date. The pre-split price of the “normal manner” market remained unchanged. Because market sellers obtain full value for the shares they sell at the “normal manner” price, they are not entitled to the split shares they will receive as holders on the record date, thus they transfer the split shares to their buyers via “due bills.” Due invoices must be redeemed by June 1, 1999.
Stockholders can sell shares before the split distribution date at a lower post-split price by establishing a “when issued” post-split price. To reflect the anticipated 2 for 1 split, the “when issued” price is roughly half of the original pre-split price. After the market closes on the distribution date, “when issued” trading ceases. When you sell stock at a lower “when issued” price, you are usually entitled to the stock split shares on the shares you sold.
You are usually entitled to get stock split shares if you purchase stock at the “ordinary way” price. You are usually not entitled to get stock split shares if you purchase stock at the “when issued” price.
IBM shares will trade at both “normal way” and “when issued” prices from May 6 to May 26, and these prices will be reflected in stock tables published in many newspapers and through other quote systems. On May 27, the day after the stock split share distribution, IBM will trade at a single price once more.
What happens if I lose a stock split statement showing my share credit?
The book entry statement, unlike stock certificates, is not a tradable document. While it is a good idea to store your investment information in a secure location, if you misplace your statement, Computershare can offer a duplicate upon request.
What are the tax consequences of IBM stock splits ?
The stock split by IBM is not taxed in the United States. When you sell stock split shares or any other shares of IBM common stock that you own as of the stock split record date, you must adjust your cost basis to appropriately reflect the split in order to calculate your gain or loss. If you have any issues regarding estimating your cost basis, you should contact your tax advisor.
What do I do with my old certificates?
The IBM common stock certificates that have already been issued are still valid. DO NOT GET RID OF THEM. As precious documents, all of your certificates should be kept in a secure location, such as a safety deposit box. Computershare will credit your book entry account if you submit them in.
What is book entry?
Without stock certificates, book entry allows for share ownership. This system is comparable to that employed with mutual fund investments or corporate dividend reinvestment plans. To have book entry ownership, you do not need to be registered in a dividend reinvestment scheme.
Registered stockholders store their book entry shares with Computershare, the transfer agent and recordkeeper. When a transaction occurs on a shareholder’s account, the transfer agent registers it and sends the stockholder a statement that includes the transaction and the total number of shares possessed. At any time, stockholders can request a book entry statement.
What is the advantage of safekeeping/book entry share ownership?
When you own shares in book entry, you are relieved of the obligation of storing a certificate, as well as the danger and cost of replacing the certificate if it is lost. You can sell book entry stock directly through the transfer agent at any time, or request a stock certificate. Computershare, formerly known as EquiServe, already has a book entry position for most IBM stockholders of record. Book entry was also used to handle the 1997 two-for-one stock split.
Who mails the stock split book entry statement?
Computershare, formerly EquiServe, our stock transfer agent, mails the book entry statement to stockholders of record. Your statement should have arrived on or around May 26, 1999.
Why did IBM have a stock split in 1999?
The company anticipated that a two-for-one split of common stock would result in a market price that would appeal to a wider range of investors, especially individual investors.
Why does IBM use book entry for stock splits?
- Stockholders are no longer exposed to the risk of losing a stock certificate, as well as the cost of replacing it.
- The transfer agent can electronically transfer book entry shares straight to the stockholder’s broker.
- The costs of issuing and sending actual stock certificates are reduced by using book entry.
Does IBM have a drip?
For DRIP investors, IBM offers a DRIP plan with a cash buy option. The company’s fees on optional cash purchases and dividend reinvestments are higher than the industry average; yet, IBM has a strong dividend growth track record.
Is IBM a good dividend stock?
Cloud software will continue to be in high demand in the coming years. IBM has a low price-to-earnings ratio of 15.93 percent and pays a 4.71 percent dividend. In 27 straight quarters, the company has exceeded earnings-per-share expectations.
What will happen to IBM dividend after split?
In the 12 months following the distribution, IBM plans to trade its remaining 19.9% ownership in Kyndryl for outstanding IBM debt, according to the company. The initial combined dividend amount of Kyndryl and IBM following the separation is projected to be no less than IBM’s pre-spinoff dividend per share, according to IBM.
