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How Much Will IBM Pay Out in Dividends in 2025?
IBMIBM(IBM) The Motley Fool·2024-10-25 10:27

IBM's Dividend Trends - IBM has been issuing quarterly dividends since 1913 and has increased its payout per share for 28 consecutive years, a trend expected to continue [1] - The company is likely to raise its dividend in June 2025, as it has done annually since 1995, potentially by a symbolic 0.01pershare,resultinginafull−yearpayoutof0.01 per share, resulting in a full-year payout of 6.71 per share [1] - IBM's free cash flow has been rising, which could lead to a dividend boost of more than 0.01in2025[2]IBM′sFinancialPosition−IBM′stotaldividendexpensefor2025isestimatedtobearound0.01 in 2025 [2] IBM's Financial Position - IBM's total dividend expense for 2025 is estimated to be around 6.2 billion, which is just over half of the expected free cash flow of at least 12billionforthisfiscalyear[3]−Thecompany′sgrowingcashprofitsaremakingdividendexpensesasmallerportionofitsoverallcashflow[4]IBM′sBusinessPerformance−IBM′sprofitsareincreasingduetostrongsoftwaresalesandagrowingpresenceintheenterprise−classAIservicesmarket[3]−ThewatsonxgenerativeAIplatformhasover12 billion for this fiscal year [3] - The company's growing cash profits are making dividend expenses a smaller portion of its overall cash flow [4] IBM's Business Performance - IBM's profits are increasing due to strong software sales and a growing presence in the enterprise-class AI services market [3] - The watsonx generative AI platform has over 3 billion in orders, up from $2 billion three months ago, with most orders being for consulting services rather than software licenses [3]