IBM Has Raised Its Dividend for 31 Years. Inflation Is Still Winning

IBM has maintained its 31-year streak of raising quarterly dividends, but the latest increase has been minimal. The company now pays $1.69 per share quarterly, a $0.01 raise from the previous rate. Over the years, IBM has increased its dividend from $1.10 in 2015 to $1.69 in April 2026, resulting in a small annual gain of $0.04 for shareholders.

In comparison, Microsoft has grown its dividend from $0.13 in 2010 to $0.98 in September, offering a more significant income growth opportunity for investors. Despite IBM's substantial free cash flow of $14.73 billion in 2025, which comfortably covers its $6.255 billion dividend payout, the company is directing its cash towards acquisitions, debt repayment, and quantum computing investments.

With a dividend yield of 2.83%, IBM's recent 1-cent quarterly increase does not adequately address inflation concerns. Analysts suggest that Microsoft may be a better choice for investors seeking real income growth, as IBM has fallen out of a recent list of the top 10 stocks to buy now.