IBM Opens Quantum Innovation Hub at ETH Zurich With Lockheed Martin

IBM raised its quarterly dividend by a single penny, from $1.68 to $1.69, in a declaration dated April 22, 2026, marking its 31st consecutive year of increases but adding only about four cents to the annualized payout. The one-cent step continues a run of five straight penny bumps, a sharp slowdown from 2015, when the quarterly payout rose from $1.10 to $1.30. IBM's dividend remains well covered: the company produced $14.73 billion in free cash flow in 2025 against a payout of $6.255 billion, and CFO Jim Kavanaugh told analysts on the Q2 call that IBM returned $3.2 billion to shareholders in dividends through the first half of the year. The cash is increasingly being redirected toward acquisitions of Confluent and HashiCorp, $62 billion in debt, and more than $10 billion committed to quantum computing over five years, while CEO Arvind Krishna pointed to a generative AI book of business exceeding $12.5 billion. IBM offers the highest yield among its peers at 2.83% but the slowest growth, trailing Microsoft, which pushed its quarterly dividend from $0.91 to $0.98 in September on a run from $0.13 in 2010, as well as Cisco Systems and Oracle. With IBM shares down 20.71% year to date at $230.17, the total-return case now rests on the AI reinvestment thesis rather than dividend growth.