ARMONK, N.Y. - International Business Machines Corp. (NYSE: NYSE:IBM), more commonly known as IBM , announced today an increase in its regular quarterly cash dividend. The technology giant has raised the dividend to $1.67 per common share, which is scheduled for payment on June 10, 2024, to shareholders on record as of May 10, 2024.
This latest increase marks the 29th consecutive year that IBM has raised its dividend, continuing a pattern that has been consistent since the company started paying quarterly dividends in 1916. IBM's commitment to shareholder returns is a testament to its financial health and the board's confidence in the company's future.
Arvind Krishna, IBM's chairman and chief executive officer, commented on the company's focus on hybrid cloud and artificial intelligence (AI) technologies, which he cited as key drivers of growth for both IBM and its clients. He highlighted the company's strong business performance, noting sustained revenue growth, enhanced productivity, and robust cash generation.
The decision to increase the dividend aligns with IBM's strategy of providing value to its shareholders and demonstrates confidence in its business model and prospects. As one of the longest-standing technology companies, IBM has a history of adapting to market changes and technological advancements, which is reflected in its strategic focus on hybrid cloud and AI.
IBM's consistent dividend payments and increases underscore its role as a staple in investment portfolios that favor long-term, income-generating assets.
The announcement is based on a press release statement from IBM.
InvestingPro Insights
As International Business Machines Corp. (IBM) continues to reward its shareholders with a dividend increase, a closer look at the company's financial metrics and market performance offers additional insights. According to InvestingPro data, IBM's market capitalization stands at a robust $152.18 billion, with a Price/Earnings (P/E) ratio of 18.55, reflecting investor confidence in the company's earnings potential. Notably, the company's Price/Book (P/B) ratio is 6.54, which is considered high, indicating that the market values IBM's assets quite aggressively relative to its book value.
InvestingPro Tips reveal that IBM has maintained a strong track record of dividend payments, having done so for 54 consecutive years, which is in line with the company's latest announcement of a dividend hike. This consistency in dividend payments is a testament to IBM's financial stability and commitment to shareholder returns. Furthermore, the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), suggesting that it might be undervalued and could potentially be an attractive entry point for investors.
While the company's stock has experienced a significant decline over the past week, it's important to note that IBM's valuation implies a strong free cash flow yield, which can be an indicator of the company's ability to generate cash and sustain its dividend payments. For investors seeking additional insights and tips on IBM, InvestingPro offers a comprehensive list of over ten additional tips, which can be accessed at https://www.investing.com/pro/IBM. To further enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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