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.
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.
Is IBM a safe dividend stock?
- IBM is a new entrant to the Dividend Aristocrats, thanks to its long history of yearly dividend increases.
- The dividend appears to be safe, and the company’s robust cash flows back it up.
- The dividend yield on IBM stock is strong, but dividend growth has slowed substantially in recent years.
Will IBM increase its dividend in 2021?
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 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.
The new quarterly dividend from IBM is $1.64 per share, a $0.01 increase over the previous dividend and a dividend yield of about 4.5 percent. That’s a smidgeon of a rise, but it’s enough to keep the dividend growth streak going while IBM makes a comeback. The dividend increase doesn’t significantly change the picture for dividend investors, but it does make the stock more appealing.
What happens to IBM stock after spinoff?
For IBM shareholders, the distribution will be tax-free. Kyndryl will be listed on the New York Stock Exchange under the symbol KD. 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.
Is IBM splitting into two companies?
IBM has decided on a new name for its $19 billion managed infrastructure services business, which will be split out later this year from Big Blue: Kyndryl.
Kyndryl will be situated in New York City, according to the Armonk, N.Y.-based technology behemoth, and will use a logo that features the company’s name spelled entirely in lowercase in red. The separation of the Kyndryl business, which has 4,600 clients, is anticipated to take place by the end of 2021, more than a year after the separation plan was first announced.
“In a statement, CEO Martin Schroeter stated, “Kyndryl evokes the spirit of true partnership and growth.” “Kyndryl will be known around the world as a brand that runs the important systems at the core of progress, as well as an independent firm with the best global talent in the sector.”
The name of the company was created by combining the first and second parts of the words “kinship” and “tendril.” Kinship was chosen to represent the importance of relationships with employees, customers, and partners in the new company’s strategy, while tendril was picked to represent the new company’s constant efforts to further human growth.
“In a statement, Chief Marketing Officer Maria Bartolome Winans remarked, “Creating a name is just the beginning of our journey as a brand.” “It will aid in our identification and recognition, but the meaning of the name will evolve through time as a result of our behaviors, aspirations, and activities, as well as what we empower our customers to do.”
When are IBM dividends typically paid?
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)
