IBM (IBM) Plans Quarterly Dividend of $1.57

Share on StockTwits

IBM (NYSE:IBM) declared a quarterly dividend on Tuesday, October 30th, RTT News reports. Shareholders of record on Friday, November 9th will be paid a dividend of 1.57 per share by the technology company on Monday, December 10th. This represents a $6.28 dividend on an annualized basis and a yield of 5.10%. The ex-dividend date of this dividend is Thursday, November 8th.

IBM has increased its dividend by an average of 11.6% annually over the last three years and has increased its dividend annually for the last 18 consecutive years. IBM has a payout ratio of 45.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect IBM to earn $14.02 per share next year, which means the company should continue to be able to cover its $6.28 annual dividend with an expected future payout ratio of 44.8%.

NYSE IBM opened at $123.12 on Wednesday. IBM has a 52 week low of $114.09 and a 52 week high of $171.13. The stock has a market cap of $105.12 billion, a PE ratio of 8.92, a price-to-earnings-growth ratio of 1.69 and a beta of 1.18. The company has a quick ratio of 1.26, a current ratio of 1.31 and a debt-to-equity ratio of 1.81.

IBM (NYSE:IBM) last released its quarterly earnings results on Tuesday, October 16th. The technology company reported $3.42 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $3.40 by $0.02. IBM had a net margin of 7.12% and a return on equity of 69.98%. The firm had revenue of $18.76 billion during the quarter, compared to analyst estimates of $19.04 billion. During the same quarter in the prior year, the firm earned $3.30 EPS. The business’s revenue for the quarter was down 2.1% compared to the same quarter last year. Sell-side analysts forecast that IBM will post 13.81 EPS for the current fiscal year.

IBM announced that its board has approved a stock buyback plan on Tuesday, October 30th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the technology company to buy up to 3.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its shares are undervalued.

IBM has been the subject of several research reports. UBS Group raised shares of IBM from a “neutral” rating to a “buy” rating and upped their price target for the company from $160.00 to $180.00 in a research report on Wednesday, September 26th. Zacks Investment Research lowered shares of IBM from a “buy” rating to a “hold” rating in a research report on Wednesday, September 19th. Stifel Nicolaus reduced their price target on shares of IBM from $182.00 to $178.00 and set a “buy” rating for the company in a research report on Thursday, July 19th. Morgan Stanley reduced their price target on shares of IBM from $185.00 to $168.00 and set an “overweight” rating for the company in a research report on Wednesday, October 17th. Finally, Argus lowered shares of IBM from a “buy” rating to a “hold” rating in a research report on Thursday, October 18th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and ten have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $165.02.

In other news, Director Sidney Taurel bought 4,311 shares of IBM stock in a transaction that occurred on Wednesday, October 31st. The stock was bought at an average cost of $115.02 per share, with a total value of $495,851.22. Following the acquisition, the director now owns 19,987 shares of the company’s stock, valued at approximately $2,298,904.74. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Virginia M. Rometty bought 8,500 shares of IBM stock in a transaction that occurred on Friday, November 2nd. The stock was purchased at an average cost of $117.51 per share, with a total value of $998,835.00. Following the completion of the acquisition, the chairman now directly owns 11,368 shares in the company, valued at approximately $1,335,853.68. The disclosure for this purchase can be found here. Corporate insiders own 0.17% of the company’s stock.

COPYRIGHT VIOLATION NOTICE: This article was first posted by Week Herald and is the sole property of of Week Herald. If you are viewing this article on another publication, it was stolen and reposted in violation of US and international copyright law. The original version of this article can be viewed at https://weekherald.com/2018/11/07/ibm-ibm-plans-quarterly-dividend-of-1-57.html.

IBM Company Profile

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers.

Read More: The benefits and drawbacks of dollar cost averaging

Dividend History for IBM (NYSE:IBM)

Receive News & Ratings for IBM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IBM and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply