International Business Machines pays about $6.4 billion a year in dividends, a cost that is covered roughly 2.5 times by the company's expected 2026 free cash flow of near $15.7 billion. The stock has fallen 33% from its 52-week high to about $224, pushing the dividend yield to about 3%. IBM generated $14.7 billion of free cash flow in 2025 and expects an increase of about $1 billion this year, making the payout ratio about 40% of projected free cash flow. The company has raised its dividend for 31 consecutive years, though the most recent increase was just a penny to $1.69 per quarter. The stock's decline reflects a growth slowdown, with second-quarter revenue up only 1% and management trimming its full-year constant-currency revenue growth outlook to 4% to 5% from more than 5%.
International Business MachinesDividend cost and growth slowdown weigh on stock
NVIDIA Corporation