International Business Machines Corporation (NYSE:IBM) Increases Dividend to $1.69 Per Share

Key Points

• IBM raised its quarterly dividend to $1.69 per share (a 0.6% increase), payable June 10 with an ex-dividend date of May 8, implying a roughly 2.7% yield and continuing a 30-year streak of annual dividend increases.
• IBM beat Q1 expectations with EPS of $1.91 (vs. $1.81 est.) and revenue of $15.92 billion, up 9.5% year-over-year, leaving its payout ratio near 57.8% and supporting dividend coverage.
• Analysts are generally positive — MarketBeat shows an average rating of "Moderate Buy" and a consensus price target around $298.8, with individual targets ranging roughly $285–$360.

International Business Machines Corporation (NYSE:IBM - Get Free Report) declared a quarterly dividend on Wednesday, April 22nd. Shareholders of record on Friday, May 8th will be given a dividend of 1.69 per share by the technology company on Wednesday, June 10th. This represents a c) annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Friday, May 8th. This is a 0.6% increase from International Business Machines's previous quarterly dividend of $1.68.

International Business Machines has raised its dividend by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 30 consecutive years. International Business Machines has a payout ratio of 57.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect International Business Machines to earn $13.31 per share next year, which means the company should continue to be able to cover its $6.72 annual dividend with an expected future payout ratio of 50.5%.

International Business Machines Stock Down 1.5%

IBM stock opened at $251.72 on Thursday. International Business Machines has a 12-month low of $220.72 and a 12-month high of $324.90. The company has a quick ratio of 0.92, a current ratio of 0.96 and a debt-to-equity ratio of 1.67. The company has a market cap of $236.12 billion, a price-to-earnings ratio of 22.58, a PEG ratio of 2.68 and a beta of 0.69. The company has a 50 day moving average of $247.04 and a two-hundred day moving average of $281.21.

International Business Machines (NYSE:IBM - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The technology company reported $1.91 EPS for the quarter, beating the consensus estimate of $1.81 by $0.10. International Business Machines had a net margin of 15.69% and a return on equity of 38.15%. The business had revenue of $15.92 billion for the quarter, compared to analysts' expectations of $15.60 billion. During the same period in the previous year, the company posted $1.60 EPS. International Business Machines's revenue was up 9.5% on a year-over-year basis. On average, equities analysts anticipate that International Business Machines will post 12.34 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. BMO Capital Markets reduced their price objective on International Business Machines from $350.00 to $290.00 and set a "market perform" rating for the company in a research report on Thursday, March 19th. Dbs Bank raised International Business Machines from a "hold" rating to a "moderate buy" rating in a research report on Monday, January 19th. Evercore raised their price target on International Business Machines from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Argus set a $360.00 price target on International Business Machines in a research note on Friday, January 30th. Finally, Citigroup started coverage on International Business Machines in a report on Friday, April 10th. They issued a "buy" rating and a $285.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, International Business Machines has an average rating of "Moderate Buy" and a consensus price target of $298.81.

International Business Machines Company Profile

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

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