IBM Has Fallen 33% From Its High and Yields 3%. Here's What That Dividend Actually Costs the Company.
A drawdown this deep has turned a modest payout into a 3%-plus yield. The arithmetic behind it is worth checking.
Overview
International Business Machines (NYSE: IBM) trades at about $224 as of this writing, roughly 33% below its 52-week high of $332.46. The slide has pushed the technology veteran's dividend yield to about 3% -- a level that tends to attract income investors' attention.
A yield is only half of a dividend's story, though. The other half is what the payments actually cost the company, and whether the underlying business produces enough cash to keep writing the checks. So, what does IBM's dividend cost?
Details
About $6.4 billion a year. The company paid $3.2 billion of dividends in the first half of 2026 alone. At $1.69 per quarter, or $6.76 per year, the payout consumes about 60% of IBM's trailing earnings per share of a bit over $11.
Source
Originally published at www.fool.com.